UI^JlVERSiTY  OF  CALIFORNIA 
AT    LOS  ANGELE 


READINGS  IN 
AMERICAN  DEMOCRACY 


SELECTED    AND   EDITED   BY 

THAMES   ROSS   WILLIAMSON 

ASSISTANT   PROFESSOR   OF   ECONOIOCS   AND   SOCIOLOGY 

IN    SMITH    college;     AUTHOR   OF 

"problems    IN    AMERICAN    DEMOCRACY" 


Let  us  test  our  opinions  by  the  knowledge  of 
the  most  diverse  minds,  and  cling  only  to  what 
survives  the  encounter. 


D.    C.   HEATH   &   CO.,    PUBLISHERS 

BOSTON  NEW   YORK  CHICAGO 


Copyright,  1922, 
By  D.  C.  Heath  &  Co. 

2  B4 


PREFACE 


S       This  volume  is  designed  to  accompany  the  editor's  Problems  in 
y*   American  Democracy,  and  the  choice  and  arrangement  of  the  material 

have  been  influenced  by  the  plan  of  that  text. 
^5  In  the  preparation  of  this  volume  the  effort  has  been  to  secure 
the  advantages  of  a  book  of  readings,  and  at  the  same  time  to  avoid 
e:£  some  of  the  drawbacks  common  to  such  compilations.  In  this 
^connection  the  special  features  of  the  book  may  be  referred  to 
I    -briefly: 

T*     The  editor  has  attempted  to  strike  a  judicious  compromise  between 

too  long  and  too  short  selections.     It  is  intended  that  each  selec- 

^0  tion  shall  prove  sufficiently  extended  to  convey  a  fair  and  adequate 

"^  idea  of  the  author's  point  of  view;   on  the  other  hand,  the  pressure 

'^  for  space  in  the  volume,  and  the  desirability  of  suppressing  material 

,  not  bearing  directly  upon  the  point  involved,  have  led  to  careful 

■^  eUmination,  and,  in  some  cases,  to  bracketed  insertions.     It  need 

not  be  added  that,  in  such  cases,  care  has  been  taken  not  to  distort 

,J  the  sense  of  the  original. 

^      Despite  the  wide  range  of  many  of  the  chapters,  the  editor  has 

attempted  to  choose  and  to  arrange  the  selections  so  that  each 

^  chapter  will  constitute  a  logical  and  unified  narrative     It  is  hoped, 

\j  further,  that  the  volume  has  gained  something  of  the  continuity 

(\  of  a  text  from  the  fact  that  an  editorial  paragraph  has  been  used, 

not  only  to  introduce  each  selection,  but  to  connect  and  to  weave 

together  the  two  selections  between  which  it  stands. 

To  avoid  the  unsighthness  of  type  of  varying  sizes,  the  same  size 
of  type  has  been  used  for  both  editorial  introductions  and  the  selec- 
tions. Care  has  been  taken,  however,  to  indicate  precisely  where 
each  editorial  introduction  stops  and  the  selected  reading  begins. 

To  help  the  student  to  understand  the  selections,  and  to  facilitate 
reference,  marginal  notes  have  been  employed  throughout  the 
book. 

A  number  of  qusstions  on  the  readings  is  supplied  at  the  end  of 
each  chapter.     The  volume  is  provided  with  an  index. 

V 


^^319/1 


vi  PREFACE 

These  features  have  been  adopted  with  a  double  aim  in  view.  In 
the  first  place,  it  is  believed  that  they  will  render  the  volume  more 
useful  and  attractive  to  students  employing  it  in  connection  with 
the  Problems.  In  the  second  place,  it  is  hoped  that  these  features 
will  encourage  the  use  of  the  volume  independently  of  the  editor's 
text.  The  editor  beheves  that  these  selections  may  profitably  be 
used  not  only  by  classes  studying  the  problems  of  American  de- 
mocracy as  such,  but  by  classes  in  civics,  government,  economics, 
and  sociolog}^  Further,  it  is  hoped  that  the  book  may  find  some 
favor  with  the  general  reader  who  seeks  representative  material 
upon  a  fijeld  of  increasing  importance,  namely,  the  great  national 
problems  confronting  the  American  people. 

The  procedure  usual  in  preparing  volumes  of  this  kind  has  been 
followed.  Points  indicate  omissions,  and  brackets  the  insertion  of 
editorial  material.  Unless  otherwise  stated  in  the  footnotes,  each 
selection  is  intended  to  be  an  exact  reproduction  of  the  original. 
Wherever  feasible,  however,  capitalization,  speUing,  and  punctua- 
tion have  been  modernized,  and  where  a  slight  grammatical  error 
threatened  to  confuse  or  divert  the  attention  of  the  student,  there 
has  been  no  hesitancy  in  correcting  the  defect.  No  attempt  has 
been  made,  on  the  other  hand,  to  tamper  with  the  style  of  the 
selections. 

While  assuming  responsibiUty  for  the  defects  of  the  book,  the 
editor  asks  the  indulgence  of  the  reader  on  two  grounds:  First, 
because  the  great  scope  of  the  subject  has  rendered  extremely  difii- 
cult  the  selection  of  material  which  wiU  adequately  represent  the 
historical,  economic,  social,  and  pohtical  phases  of  our  national 
problems;  and  second,  because  in  attempting  this  task  the  editor 
is  breaking  new  ground,  venturing  into  a  field  until  now  avoided 
by  educators. 

The  thanks  of  the  editor  are  due  to  the  authors  from  whose  writings 
the  selections  have  been  taken,  and  to  the  pubHshers  who  have 
kindly  permitted  the  use  of  copyrighted  material. 

THAMES  ROSS  WILLI AJVI  SON 

February  19,  1922 

CAMBRIDGE,  MASSACHUSETTS 


ACKNOWLEDGMENTS 

Thanks  are  due  to  the  following  publishers  and  periodicals  for  permission 
to  reprint  extracts  from  copyrighted  material:  To  Longmans,  Green  &  Co. 
for  Nos.  31,  58,  200,  and  225;  to  the  Macmillan  Company  for  Nos.  37,  54, 
59,  60,  154,  195,  199,  228,  229,  and  230;  to  the  Quarterly  Journal  of 
Ecoiomks  for  Nos.  40,  42,  and  184;  to  the  Johns  Hopkins  Press  for 
No.  44;  to  Ginn  &  Company  for  Nos.  50  and  57;  to  Silver,  Burdett  &  Co. 
for  No.  51;  to  Henry  Holt  &  Co.  for  Nos.  52  and  56;  to  Princeton  Uni- 
versity Press  for  Nos.  66,  185,  and  186;  to  the  National  Industrial  Con- 
ference Board  for  Nos.  68  and  105;  to  the  American  Journal  of  Sociology 
for  Nos.  69  and  139;  to  the  Cooperative  League  of  America  for  Nos.  70 
and  71;  to  Charles  H.  Kerr  &  Co.  for  No.  74;  to  Thomas  Y.  Crowell  Co. 
for  Nos.  91,  95,  and  96;  to  Charles  Scribner's  Sons  for  Nos.  92,  226,  and 
227;  to  the  American  Statistical  Association  for  No.  93;  to  the  Annals 
of  the  American  Academy  of  Political  and  Social  Science  for  Nos.  102,  118, 
and  120;  to  the  Chamber  of  Commerce  of  the  United  States  of  America 
for  No.  107;  to  the  Carnegie  Foundation  for  No.  122;  to  the  Arbor  Press 
for  No.  129;  to  Columbia  Universit}^  Press  for  Nos.  133  and  193;  to  the 
Pilgrim  Press  for  No.  138;  to  the  American  Economic  Review  for  No.  147; 
to  B.  W.  Huebsch,  Inc.  for  No.  144;  to  the  National  Civic  Federation  for 
No.  145;  to  the  National  Tax  Association  for  Nos.  151,  187,  and  188; 
to  the  National  Citizens'  League  for  No.  182;  to  the  American  Law  Re- 
view for  No.  196;  to  the  Academy  of  PoHtical  Science  in  the  City  of 
New  York  for  Nos.  197,  198,  and  216;  to  G.  P.  Putnam's  Sons  for  No.  205; 
to  the  National  Municipal  Review  for  Nos.  206,  217,  219,  223,  and  224; 
to  the  American  Political  Science  Association  for  No.  211;  and  to  the  fol- 
lowing authors:  to  Dr.  Frederick  Starr  for  No.  39;  and  to  Dr.  T.  N.  Carver 
for  No.  97. 


vu 


CONTENTS 

PART  I 

FOUNDATIONS  IN  AMERICAN   DEMOCRACY 

CHAPTER  I  —  THE  BACKGROUND  OF  AMERICAN  DEMOCRACY 

PAGE 

1.  Christopher  Columbus  discovers  America i 

From  Christopher  Columbus,  Journal. 

2.  Captain  John  Smith  on  conditions  at  Jamestown 3 

From  Captain  John  Smith,  Works. 

3.  The  Pilgrims  resolve  to  leave  Holland 5 

From  William  Bradford,  History  of  Plymouth  Plantation. 

4.  The  Mayflower  reaches  New  England 7 

From  William  Bradford,  History  of  Plymouth  Plantation. 

5.  The  struggles  of  the  early  colonists 9 

From  Timothy  D  wight.  Travels  in  New  England  and  New  York. 

6.  Growth  of  the  English  colonies  11 

From  Benjamin  Franklin,  Works. 

CHAPTER  II  — THE   ORIGIN  OF   AMERICAN  DEMOCRACY 

7.  King  John  is  forced  to  sign  the  Magna  Charta 15 

From  the  Magna  Charta. 

8.  The  Pilgrims  agree  to  establish  a  pure  democracy 16 

From  the  Mayflo'wer  Compact. 

9.  Representative  government  in  America 18 

From  the  Ordinance  for  Virginia. 

10.  A  republic  established  in  the  Connecticut  wilderness 20 

From  the  Fundamental  Orders  of  Connecticut. 

11.  Virginia  asserts  the  principles  of  just  government 22 

From  the  Virginia  Bill  of  Rights. 

12.  The  colonists  declare  their  independence 24 

From  the  Declaration  of  Independence. 

CHAPTER  III  — THE   DEVELOPMENT  OF 
AMERICAN   DEMOCRACY 

13.  Four  colonies  combine  for  mutual  defense 30 

From  the  New  England  Confederation. 

ix 


X  CONTENTS 

PACK 

14.  The  union  of  all  of  the  colonies  is  proposed 32 

From  the  Albany  Plan  of  Union. 

15.  The  states  enter  a  league  of  friendship 34 

From  the  Articles  of  Confederation. 

16.  Washington  outlines  the  needs  of  the  country 38 

From  George  Washington,  Circular  Letter  addressed  to  the 
Governors. 

17.  Hamilton  summarizes  the  defects  of  the  Confederation 39 

From  Alexander  Hamilton,  Works. 

18.  Franklin  calls  for  the  ratification  of  the  Constitution 42 

From  Jonathan  Elliot,  Debates  on  the  Adoption  of  the  Federal 
Constitution. 


CHAPTER   IV  —  ESSENTIALS   OF  AMERICAN 
CONSTITUTIONAL  GOVERNMENT 

IQ.   Individual  rights  under  the  Federal  Constitution 45 

From  the  Constitution  of  the  United  States. 

20.  States'  rights  under  the  Federal  Constitution 47 

From  the  Constitution  of  the  United  States. 

21.  The  powers  of  the  Federal  government 48 

From  the  Constitution  of  the  United  States. 

22.  The  extent  of  Federal  powers 51 

From  U.  S.  Supreme  Court  decision  in  the  case  of  M'Cul- 
loch  vs.  the  State  of  Maryland. 

23.  The  check  and  balance  system 53 

From  the  Federalist. 

24.  Significance  of  the  judiciary  in  American  government 55 

From  U.  S.  Supreme  Court  decision  in  the  case  of  Marbury 
vs.  Madison. 


CHAPTER  V  — THE  PROBLEMS  OF   AMERICAN  DEMOCRACY 

25.  Washington's  charge  to  the  nation 60 

From  George  Washington,  Fareivell  Address. 

26.  Jackson  on  the  aims  of  government 62 

From  Andrew  Jackson,  Second  Inaugural  Address. 

27.  Lincoln  on  the  spirit  of  lawlessness 63 

From  the  Sangamon  (111.),  Journal. 

28.  Roosevelt  on  the  problems  of  American  life 65 

From  Theodore  Roosevelt,  Second  Inaugural  Address. 

29.  Wilson  on  the  dangers  of  the  World  War  period 68 

From  Woodrow  Wilson,  Second  Inaugural  Address. 

30.  Harding  on  the  issues  of  the  Twentieth  Century 70 

From  Warren  G.  Harding,  Address  to  Ohio  Society  of  New  York. 


CONTENTS  xi 

PART  II 

AMERICAN  ECONOMIC  PROBLEMS 

a.  Economics  of  Americ.\n  Industry 

CHAPTER  VI  — THE   NATURE  OF  AMERICAN  INDUSTRY 

PAGE 

31.  Natural  resources  of  the  nation 75 

From  Ernest  L.  Bogart,  The  Economic  History  of  the  United 
States. 

32.  Growth  of  population  in  the  United  States 77 

From  the  U.  S.  Bureau  of  the  Census,  Statistical  Atlas  of 
the  U.S. 

33.  Occupations  of  the  American  People 79 

From  the  Thirteenth  Census  of  the  U.  S. 

34.  Governmental  encouragement  of  business 83 

From  various  bulletins  issued  by  the  U.  S.  Government. 

35.  Keeping  track  of  industrial  tendencies 85 

From  the  National  City  Bank  of  New  York,  Monthly  Business 
Letter. 

36.  The  wealth  of  the  nation 87 

From  the  U.  S.  Bureau  of  Census,  Estimated  Valuation  of 
National  Wealth. 

CHAPTER  VII  — WHAT  IS   MEANT   BY  PRODUCTION 

37.  Man's  part  in  production 91 

From  Eugen  von  Boehm-Bawerk,   The  Positive  Theory  of 
Capital. 

38.  The  principle  of  the  division  of  labor 93 

From  Adam  Smith,  An  Inquiry  into  the  Nature  and  Causes 
of  the  Wealth  of  Nations. 

39.  The  productive  methods  of  savages 95 

From  Frederick  Starr,  Some  First  Steps  in  Human  Progress. 

40.  Division  of  labor  in  colonial  manufactures 98 

From  Blanche  E.  Hazard,  The  Organization  of  the  Boot  and 
Shoe  Industry  in  Massachusetts  before  iSj^.  . 

41.  Slater  introduces  power  machinery   .nto  America 100 

From  One  Hundred  Years'  Progress  of  the  U.  S. 

42.  An  example  of  the  complex  division  of  labor 102 

From  John  R.  Commons,  Labor  Conditions  in  Meat  Packing 
and  the  Recent  Strike. 

CHAPTER  VIII  —  EXCHANGING  THE  PRODUCTS  OF  INDUSTRY 

4.3.   Relation  of  division  of  labor  to  the  market 105 

From  Adam  Smith,  An  Inquiry  into  the  Nature  atid  Causes 
of  the  Wealth  of  Nations. 


xii  CONTENTS 

PAGE 

44.  Beginnings  in  American  railway  development 107 

From  Millon  Reizenstein,  The  Economic  History  of  the  Balti- 
more &•  Ohio  Railroad. 

45.  The  nature  and  function  of  money 109 

From  Adam  Smith,  An  Inquiry  into  the  Nature  and  Causes  of 
the  Wealth  of  Nations. 

46.  Price  as  a  measure  of  value iii 

From  Charles  Gide,  Principles  of  Political  Economy. 

47.  A  provision  market  in  a  great  city 113 

From  the  Department  of  Interior,   Bureau  of  Education, 
Lessons  in  Community  and  National  Life. 

48.  The  advantages  of  exchange 115 

From  Charles  Gide,  Principles  of  Political  Economy. 


CHAPTER  IX  — DISTRIBUTING  THE  INCOME  OF  INDUSTRY 

49.  Distribution  previous  to  the  Industrial  Revolution 119 

From  the  Department  of  Interior,   Bureau  of  Education, 
Lessons  in  Community  and  National  Life. 

50.  Distribution  since  the  Industrial  Revolution 121 

From  Thomas  Nixon  Carver,  Principles  of  Political  Economy. 

51.  Some  factors  influencing  rent 123 

From    Charles   J.    Bullock,    Introduction    to    the   Study    of 
Economics. 

52.  Some  factors  influencing  interest 124 

From  Henry  Rogers  Seager,  Principles  of  Economics. 

53.  Some  factors  influencing  wages 126 

From  Adam  Smith,  An  Inquiry  into  the  Nature  and  Causes  of 
the  Wealth  of  Nations. 

54.  Some  factors  influencing  profits 128 

From  Frank  W.  Taussig,  Principles  of  Economics. 


CHAPTER  X  — BASES   OF  THE   CAPITALISTIC  SYSTEM 

55.  The  evolution  of  private  property 132 

From  Charles  Gide,  Principles  of  Political  Economy. 

56.  Types  of  business  contracts 134 

From  Coleman  Hall  Bush,  Applied  Business  Law. 

57.  The  forms  of  Competition  136 

From  Thomas  Nixon  Carv^er,  Principles  of  Political  Economy. 

58.  Kinds  of  economic  freedom 138 

From  Edwin  R.  A.  Seligman   Principles  of  Economics. 
SQ.   Production  in  anticipation  of  dcina'  id 141 

From  Henry  Clay,  Economics  j  >r  the  General  Reader. 
60.   The  inequality  of  wealth I43 

From  Frank  W.  Taussig,  P,  in  iples  of  Economics. 


CONTENTS  Xlll 

PAGE 

b.   Programs  of  Industriai,  Reform 

CHAPTER  XI  — SINGLE  TAX 

(n.   The  persistence  of  poverty  in  modern  life 147 

From  Henry  George,  Progress  and  Poverty. 

62.  The  remedy  proposed  by  Henry  George 148 

From  Henry  George,  Progress  and  Poverty. 

63.  Results  claimed  for  the  single  tax 150 

From  Henry  George,  Progress  and  Poverty. 

64.  The  case  for  the  single  tax 152 

From    Debaters'    Handbook    Series,    Selected    Articles    on 
Single  Tax. 

65.  The  case  against  the  single  tax 155 

From    Debaters'    Handbook    Series,    Selected    Articles    on 
Single  Tax. 

66.  Services  rendered  by  the  single  tax  agitation 158 

From  Arthur  Nichols  Young,  The  Siiigle  Tax  Movement  in 
the  United  States. 

CHAPTER  XII  — PROFIT  SHARING   AND   COOPERATION 

67.  Profit-sharing  establishments  in  the  United  States 161 

From  the  U.  S.  Department  of  Labor,   Bureau  of  Labor 
Statistics,  Profit  Sharing  in  the  U.  S. 

68.  Examples  of  successful  profit  sharing 163 

From  the  National  Industrial  Conference  Board,  Research 
Report  No.  2g. 

69.  Examples  of  unsuccessful  profit  sharing 165 

From  Paul  Monroe,  "Profit  Sharing  in  the  U.  S.,"  American 
Journal  of  Sociology. 

70.  Examples  of  successful  cooperation 167 

From  James  Peter  Warbasse,    The  Cooperative  Consumers' 
Movement  in  the  United  States. 

71.  Examples  of  unsuccessful  cooperation 169 

From  James   Peter  Warbasse,   Producers'    Cooperative  In- 
dustries. 

72.  The  social  benefits  of  cooperation 171 

From  C.  R.  Fay,  Cooperation  at  Home  and  Abroad. 

CHAPTER    XIII  — THE   GENERAL  NATURE  OF   SOCIALISM 

73.  Socialist  theory  of  value 174 

From  Karl  Marx,  Capital. 

74.  The  laborer  creates  all  value 175 

From  Karl  Marx,  Value,  Price  and  Profit. 

75.  The  capitalist  exploits  the  laborer 177 

From  Karl  Marx  and  Frederick   Engels,    The  Communist 
Manifesto. 


XIV  CONTENTS 

PAGE 

76.  The  doctrine  of  class  struggle 179 

From   Karl  Marx   and   Frederick   Engels,    The  Communist 
Manifesto. 

77.  Immediate  aims  of  American  socialism 181 

From    the    Socialist    Party  of   America,    Preamble    to    Ike 
National  Constitution. 

78.  Ultimate  aims  of  American  socialism 182 

From  the  United  Communist  Party,  Statement  of  Principles. 


CIL\PTER  XIV  — MILITANT   SOCIALISM:    THE  I.  W.  W. 

79.  Why  the  I.  W.  W.  organization  was  formed 185 

I'rom  the  Manifesto  Calling  a  Convention  to  Organize  the 
Industrial  Workers  of  the  World. 

80.  The  I.  W.  W.  declare  war  upon  capitalism 187 

From  the  Industrial  Workers  of  the  World,  Preamble    to 
the  Constitution. 

81.  The  purpose  of  "mass  action." 188 

From  the  N.  Y.  Joint  Legislative  Committee  Investigating 
Seditious  Activities,  Report. 

82.  The  nature  and  purpose  of  sabotage 190 

From  the  N.  Y.  Joint  Legislative  Committee  Investigating 
Seditious  Activities,  Report. 

83.  Excerpts  from  the  I.  W.  W.  press 191 

From  the  New  Solidarity^  and  The  One  Big  Union  Monthly. 

84.  The  call  for  a  socialist  revolution 193 

From  the  American  Anarchist  Federated  Commune  Soviets, 
Anarchist  Soviet  Bulletin. 


CHAPTER  XV  — MILITANT  SOCIALISM:    THE  BOLSHEVISTS 

85.  Socialism  is  established  in  Russia 197 

From   the    Russian   Socialist    Federated    Soviet   Republic, 
Constitution.  . 

86.  The  suffrage  under  bolshevism 198 

From    the    Russian    SociaUst    Federated    Soveit    Republic, 
Constitution. 

87.  Lenin  defends  the  dictatorship  of  the  proletariat 200 

From  Nickolai  Lenin,  as  reported  in  the  Pctrograd  Pravda. 

88.  Aims  of  bolshevist  propagandists  abroad 202 

From    the    Russian    Socialist    Federated    Soviet   Republic, 
"General  Instructions  to  Foreign  Agents." 

89.  The  suicide  letter  of  a  bolshevist 203 

From    J.    Landfield,    "A    Commissar    Disillusioned,"    The 
Revie'd'. 

go.   The  bolshevists  return  to  the  capitalistic  system 205 

From  the  New  York  Times. 


CONTENTS  XV 

PAGE 

CHAPTER  XVI  — THE   CASE  AGAINST  SOCIALISM 

Qi.   The  labor  theory  of  value  is  untrue 208 

From  James  Edward  Le  Rossignol,  Orthodox  Socialism. 

92.  The  laborer  does  not  produce  all  wealth 210 

From  Boris  L.  Brasol,  Socialism  vs.  Civilization. 

93.  The  masses  are  not  reduced  to  wage  slavery 212 

From     the     American     Statistical    Association,    Quarterly. 

94.  Defects  of  socialist  production 215 

From  A.  Schaeffle,  The  Impossibility  of  Social  Democracy. 

95.  The  defects  of  socialist  distribution 217 

From  Richard  T.  Ely,  Socialism  and  Social  Reform. 

96.  Socialism  not  necessary  to  industrial  reform 219 

From  Richard  T.  Ely,  Socialism  and  Social  Reform. 

CHAPTER  XVII  — A   DEMOCRATIC   PROGRAM  OF 
INDUSTRIAL  REFORM 

97.  The  program  outlined 223 

From  Thomas  Nixon  Carver,  Essays  in  Social  Justice. 

98.  Taxation  as  a  method  of  attacking  unearned  wealth 225 

From  Edwin  R.  A.  Seligman,  Address  before   the  Inter- 
national Tax  Association. 

99.  The  promise  of  vocational  guidance 226 

From     the    National    Vocational    Guidance    Association, 
Principles  adopted  in  Convention. 

100.  Connecting  the  man  and  the  Job 228 

From  John  B.  Andrews,  Labor  Exchanges. 

loi.   The  purpose  of  labor  legislation 231 

From  Frank  Tracy  Carlton,  The  History  and  Problems  of 
Organized  Labor. 

102.  The  practice  of  thrift 233 

From  the  American  Academy  of  Political  and  Social  Science, 
Annals. 

PART  III 
AMERICAN    SOCIAL    PROBLEMS 
CHAPTER  XVIII— INDUSTRIAL   RELATIONS 

103.  The  extent  of  strikes  and  lock-outs 237 

From  the  U.   S.   Department  of  Labor,   Bureau  of  Labor 
Statistics,  Monthly  Labor  Review. 

104.  Failure  of  voluntary  arbitration:  an  example 239 

From  the  New  York  Times. 

105.  Legal  responsibihty  in  industrial  relations 242 

From  Forrest  R.  Black,  Should  Trade  Unions  atid  Employers^ 
Associations  be  made  Legally  Responsible? 


XVI  CONTENTS 

PAGE 

io6.   The  Kansas  Court  of  Industrial  Relations 244 

From  the  U.  S.  Department  of  Labor,  Bureau  of  Labor 
Statistics,  Monthly  Labor  Review. 

107.  Proposed  principles  of  industrial  relations 246 

From  the  Chamber  of  Commerce  of  the  U.   S.,  A  Labor 
Program  by  Business. 

108.  The  promise  of  employee  representation- 249 

From  the  Industrial  Conference  called  by  the  President, 
Report. 


CHAPTER  XIX  — HEALTH  IN  INDUSTRY 

109.   The  conservation  of  human  life 253 

From  the  Committee  of  One  Hundred  on  National  Health, 
Report  on  National  Vitality,  its  Wastes  and  Conservation. 

no.   Minimum  standards  for  child  laborers 255 

From  the   Washington  and  Regional  Conferences  on  Child 
Welfare. 

111.  Standards  governing  the  employment  of  women 257 

From  the  U.  S.  Department  of  Labor,  Standards  for  the  Em- 
ployment of  Women  in  Industry. 

112.  Results  of  minimum  wage  legislation 259 

From  the  U.  S.   Department  of   Labor,   Bureau  of  Labor 
Statistics,  Monthly  Labor  Review. 

113.  A  typical  workmen's  compensation  law 2^2 

From  the  Statutes  of  the  Slate  of  New  York,  Workmen's 
Compensation  Law. 

114.  The  constitutionality  of  labor  legislation 264 

From  Frank  Tracy  Carlton,   The  History  and  Problems  of 
Organized  Labor. 


CIL\PTER  XX  — IMMIGIL\TION  AND   ASSIMILATION 

115.  The  nature  of  the  immigrant  labor  supply 268 

From    the    U.    S.    Immigration    Commission,   Abstracts   of 
Reports,  'with  Conclusions,  etc. 

116.  Living  conditions  in  immigrant  communities 270 

From   the   U.    S.    Immigration   Commission,   Abstracts   of 
Reports,  with  Conclusions,  etc. 

117.  The  literacy  test 272 

From  the  Statutes  of  the  U.  S.,  Immigration  Law  of  1917. 

118.  Why  California  objects  to  the  Japanese 273 

From  the  American  Academy  of  Political  and  Social  Science, 
Annals. 

IQ.   Americanizing  the  immigrant 275 

From  the  U.  S.  Department  of  the  Interior,  Bureau  of  Edu- 
cation, Bulletin. 


CONTENTS  •  xvii 

PAGE 

I20.  A  proposed  immigration  policy 277 

From  the  National  Committee  for  Constructive  Immigration 
legislation,  Program. 


CHAPTER   XXI  — CRIME  AND   CORRECTION 

121.  Taft  on  the  defects  of  criminal  procedure 281 

From  William  Howard  Taft,  Address  delivered  before  the 
Civic  Forum,  New  York  City. 

122.  Results  of  the  public  defender  movement 283 

From  the   Carnegie   Foundation   for   the  Advancement  of 
Teaching,  Bulletin. 

123.  Tendencies  in  the  juvenile  court  movement 285 

From  the  U.  S.  Department  of  Labor,  Children's  Bureau, 
Courts  in  the  United  States  Hearing  Children's  Cases. 

124.  Substitutes  for  imprisonment 287 

From  Charles  Richmond  Henderson,  Introduction  to  the  Study 
of  the  Dependent,  Defective,  and  Delinquent  Classes. 

125.  The  functions  of  the  psychopathic  expert 289 

From  the  Chicago  House  of  Correction,  Research  Depart- 
ment, Bulletin. 

126.  Principles  of  reformition 291 

From  the  National  Prison  Congress,  Declaration  of  Principles 
Promulgated  at  Cincinnati. 


CHAPTER  XXII  — THE   NEGRO 

127.  Occupations  of  the  American  Negro 295 

From  the  U.   S.   Department  of   the   Interior,   Bureau  of 
Education,  Bulletin. 

128.  Educational  needs  of  the  Negro  297 

From  the   U.   S.   Department   of   the   Interior,   Bureau  of 
Education,  Bulletin. 

129.  Statutory  protection  of  the  Negro 299 

From  Franklin  Johnson,  The  Development  of  Stale  Legisla- 
tion Concerning  the  Free  Negro. 

130.  A  new  negro  problem:   migration 301 

From    the    U.  S.    Bureau    of    Labor,    Division    of    Negro 
Economics,  Negro  Migration  in  igid-igry. 

131.  Inter-racial  cooperation 303 

From  Oswald  Garrison  Villard,  "The  Objects  of  the  National 
Association  for  the  Advancement  of  Colored  People." 

132.  A  charge  to  Negro  boys  and  girls 305 

From   Robert   R.   Moton,   Address  delivered  at  the  Com- 
mencement Exercises  at  Tuskegee  Institute. 


xviii  •  CONTENTS 

PAGE 

CHAPTER   XXIII  — THE   FAMILY 

133.  Economic  disruption  of  the  family 309 

From  James  P.  Lichtenberger,  Divorce,  A  Study  in  Social 
Causation. 

134.  The  struggle  for  home  life  in  the  city 311 

From  the  Housing  Commission  of  the  City  of  Des  Moines, 
Report. 

135.  Pensions  for  poor  mothers 313 

From  the  U.  S.  Department  of  Labor,  Children's  Bureau, 
Laws  relating  to  Mothers^  Pensions  in  the  United  States, 
Denmark  and  Neiv  Zealand. 

136.  A  proposed  uniform  divorce  law 315 

From  the  U.  S.  Bureau  of  Census,  Special  Report  on  Marriage 
and  Divorce. 

137.  Education  for  home-making 3^8 

From  the  U.  S.  Department  of  the  Interior,  Bureau  of 
Education,  Bulletin. 

138.  The  attitude  of  young  people  toward  marriage 320 

From  Raymond  Calkins,  The  Christian  Idea  in  the  Modern 
World: 


CIL\PTER  XXIV— DEPENDENCY:    ITS  RELIEF 
AND   PREVENTION 

139.  Instability  of  the  urban  neighborhood 323 

From  the  American  Journal  of  Sociology. 

140.  The  diagnosis  of  dependency 325 

From  the  Detroit  Associated  Charities,  Trouble  Cases. 

141.  The  friendly  visitor 327 

From  the  Associated  Charities  of  Boston,  Twenty-first  Annual 
Report. 

142.  An  ideal  almshouse 329 

From  the  National  Conference  of  Social  Work,  Proceedings. 

143.  State  control  of  institutions  for  dependents 33^ 

From    Charles   Richmond    Henderson,  Introduction    to   the 
Study  of  the  Dependent,  Defective,  and  Delinquent  Classes. 

144.  The  movement  for  financial  federation ZZi 

From   the   American   Association   for   Organizing   Charity, 
Financial  Federations. 


CHAPTER  XXV— RURAL  LIFE 

145.   Why  young  people  leave  the  farm 337- 

From  Ernest  R.  Groves,  Using  the  Resources  of  the  Country 
Church. 


CONTENTS  xix 

PAGE 

146.  Buying  farms  with  land-bank  loans 339 

From  the  U.  S.  Department  of  Agriculture,  Bulletin. 

147.  The  marketing  of  the  farmer's  produce 341 

From  the  American  Economic  Review. 

148.  The  viewpoint  of  the  farm  woman 343 

From   the   U.   S.   Department   of  Agriculture,   Department 
Circular. 

149.  The  consolidated  rural  school 345 

From   the  U.   S.   Department  of  the  Interior,   Bureau  of 
Education,  Bulletin. 

150.  The  development  of  community  spurit  in  the  country 347 

From  the  Wisconsin  Country  Life  Conference,  Third  Annual 
Report. 

CHAPTER  XXVI  —  EDUCATION 

151.  Standardization  of  schools  within  the  state 351 

From  the  U.   S.   Department  of   the   Interior,   Bureau  of 
Education,  Bulletin. 

152.  Financing  the  school  system 353 

From  the  U.   S.   Department  of   the   Interior,   Bureau  of 
Education,  Bulletin. 

153.  Compulsory  school  attendance 354 

From  the  U.  S.  Department  of  the  Interior,  Bureau  of  Edu- 
cation, Bulletin. 

154.  Problems  in  vocational  education 357 

From  the  U.  S.  Department  of  the  Interior,  Bureau  of  Educa- 
tion, Bulletin. 

155.  Wider  use  of  the  school  plant 359 

From  the  U.  S.  Department  of  the  Interior,  Bureau  of  Educa- 
tion, Bulletin. 

156.  The  money  value  of  education 361 

From  the  U.  S.  Department  of  the  Interior,  Bureau  of  Educa- 
tion, Bulletin. 

PART  IV 

AMERICAN  POLITICAL  PROBLEMS 

a.  Some  Economic  Functions  of  Government 

CHAPTER  XXVII  — PUBLIC  INTEREST  IN 
BUSINESS:   REGULATION 

157.  An  example  of  industrial  combination 3^4 

From  U.  S.  Department  of  the  Interior,  Bureau  of  Educa- 
tion, Lessons  in  Community  and  National  Life. 

158.  A  typical  trust  agreement 3^6 

From  the  U.  S.  Industrial  Commission,  Preliminary  Report 
on  Trusts  and  Industrial  Combinations. 


XX  CONTENTS 

PAGE 

159.  Abuse  of  power  by  the  trust 368 

From  the  United  States  vs.  Patterson  et  al. 

160.  The  Sherman  Anti-trust  Act  of  1890 370 

From  the  Statutes  of  the  United  States,  Federal  Anti-irtist 
law. 

161.  A  great  trust  ordered  dissolved 372 

From  the  Supreme  Court  of  the  United  States,  Decision  in 
the  case  of  the  United  States  vs.  the  American  Tobacco 
Company  and  others. 

162.  Significance  of  the  Federal  Trade  Commission 374 

From  the  Statutes  of  the  United  States,  Federal  Trade 
Commission  Law. 

CIL\PTER  XX\TII  —  PUBLIC   INTEREST  IN 
BUSINESS:   OWNERSHIP 

163.  Social  importance  of  public  utilities 378 

From  the  Report  of  the  Committee  on  Interstate  Commerce. 

164.  Extent  of  municipal  ownership 380 

From  Carl  D.  Thompson,  Municipal  Ownership. 

165.  The  future  of  municipal  ownership 381 

From  the  Report  to  the  National  Civic  Federation  on  Municipal 
and  Private  Operation  of  Public  Utilities. 

166.  The  evils  of  railroad  development z^z 

From  the  Report  of  the  Committee  on  Interstate  Commerce. 

167.  Government  administration  of  the  railroads,  1917-1920 385 

From  the  U.  S.  Railroad  Administration,  Report  of  the 
Director-General  to  the  President. 

168.  The  Transportation  Act  of  1920 387 

From  the  Statutes  of  the  United  States,  Transportation  Act 

of  Ip20. 

CIL^PTER  XXIX  — THE  TARIFF 

169.  The  basis  of  international  trade '. .     391 

From  Alvin  S.  Johnson,  Introduction  to  Economics. 

1 70.  The  nature  of  the  tariff 393 

From  Alvin  S.  Johnson,  Introduction  to  Economics. 

171.  The  United  States  Tariff  Commission , 395 

From  the  National  Tax  Association,  Proceedings  of  the 
Thirteenth  Annual  Conference  on   Taxation. 

172.  Tariff  principles  of  the  Democratic  party 397 

From  the  Democratic  National  Committee,  Democratic 
Campaign   Text-book. 

173.  Tariff  principles  of  the  Republican  party 4°° 

P'rom  the  Republican  National  Committee,  Republican 
Catnpaign  Text-book. 

174.  Relation  of  the  tariff  to  national  prosperity 402 

From  Frank  William  Taussig,  Principles  of  Economics. 


CONTENTS  XXI 

PAGE 

CHAPTER  XXX— CONSERVATION 

175.  Why  conservation  of  natural  resources  is  necessary 405 

From  the  Conference  of  Governors,  Proceedings. 

176.  Declaration  of  the  Conference  of  Governors 407 

From  the  Conference  of  Governors,  Proceedings. 

177.  A  National  Conservation  Association  formed 409 

From  the  National  Conservation  Association,  National 
Conservation  Association,  What  It  Is. 

178.  The  principles  of  conservation 410 

From  the  National  Conservation  Association,  Statement  of 
Principles. 

179.  The  legal  basis  of  conservation. . '. 412 

From  questions  submitted  by  the  Senate  of  the  State  of 
Maine  to  the  justices  of  the  Supreme  Judicial  Court  of 
Maine,  with  answers  of  the  justices. 

180.  Needed  conservation  legislation 414 

From  the  U.  S.  Department  of  Agriculture,  Timber  Depletion 
and  the  A  nswer. 

CHAPTER  XXXI— CREDIT  AND   BANKING 

181.  The  function  of  a  commercial  bank 418 

From  the  U.  S.  Department  of  the  Interior,  Bureau  of 
Education,  Lessons  in  Community  and  National  Life. 

182.  Our  banking  system  before  1913 419 

From  the  National  Citizens'  League  for  the  Promotion  of  a 
Sound  Banking  System,  Banking  Reform. 

183.  The  panic  of  1907 421 

From  the  National  Monetary  Commission,  History  of 
Crises  under  the  National  Banking  System. 

184.  The  Federal  Reserve  System 423 

From  the  Quarterly  Journal  of  Economics. 

185.  Centralization  under  the  Federal  Reserv^e  System 425 

From  Edwin  Walter  Kemmerer,  The  A  B  C  of  the  Federal 
Reserve  System. 

186.  Elasticity  under  the  Federal  Reserve  System 427 

From  Edwin  Walter  Kemmerer,  The  A  B  C  of  the  Federal 
Reserve  System. 

CHAPTER  XXXII  —  T.\XATION 

187.  Defects  of  American  taxation 431 

From  State  and  Local  Taxation,  First  National  Conference, 
Addresses  and  Proceedings. 

188.  Breakdown  of  the  general  property  tax 433 

From  State  and  Local  Taxation,  Fourth  International  Con- 
ference, Addresses  and  Proceedings. 


xxii  CONTENTS 

PAGE 

189.  The  taxation  of  corporations 435 

From  Indiana  University,  Extension  Division,  Proceedings 
of  a  Conference  on  Taxation  in  Indiana. 

190.  Social  significance  of  taxation 436 

From  Tlieodore  Roosevelt,  Annual  Message  to  Congress. 

191.  Need  of  thorough  study  of  the  tax  problem 438 

From  Indiana  University,  Extension  Division,  Proceedings 
of  a  Conference  on  Taxation  in  Indiana. 

192.  Some  principles  of  taxation    440 

From  Adam  Smith,  An  Inquiry  into  the  Nature  and  Causes 
of  the  Wealth  of  Nations. 


b.   Making  Government  Effective 

CHAPTER  XXXIII— WHO   SHALL   SHARE  IN 
GOVERNMENT  ? 

193.  The  suffrage  in  colonial  times 443 

From    Cortlandt    F.    Bishop,    History   of  Elections   in   the 
American  Colonies. 

194.  The  demand  for  universal  suffrage 445 

From  an  Address  to  the  People  of  Rhode  Island,  assembled 
in  Constitutional  Convention  in  1834. 

195.  Woman  suffrage  summed  up 447 

From    William    Bennett    Munro,    The    Government    of   the 
United  States. 

196.  How  the  Negro  is  kept  from  voting 448 

From    the    American    Political    Science    Association,    Pro- 
ceedings of  the  Second  Annual  Meeting. 

197.  Civic  capacity  cannot  be  created  by  proclamation 450 

From  the  American  Law  Review. 

198.  How  many  potential  voters  really  vote  ? 453 

From  the  Political  Science  Quarterly. 


CHAPTER  XXXIV  — THE   POLITICAL  PARTY 

199.  Extent  of  party  organization 457 

From  James  Bryce,  The  American  Commonwealth. 

200.  How  the  party  influences  voters 459 

From  Albert  Bushnell  Hart,  Actual  Government. 

201.  Evils  of  the  spoils  system 461 

From  the  National  Civil  Service  Reform  League,  Proceedings 
of  the  Annual  Meeting,  18Q4. 

202.  The  Civil  Service  Act  of  1883 463 

From  the  Statutes  of  the  United  States,  Civil  Service  Act 
of  1883. 


CONTENTS  xxiii 

PAGE 

203.  Legal  regulation  of  campaign  contributions 465 

From   Senate   Documents,   Publicity  of  Election   Contribu- 
tions and  Expenditures. 

204.  Legal  recognition  of  the  political  party 467 

From  the  Statutes  of  the  State  of  Oregon. 

CHAPTER  XXXV  —  CHOOSING  THE  AGENTS 
OF  GOVERNMENT 

205.  Essentials  of  a  primary  election  law 471 

From  James  Albert  Woodburn,  Political  Parties  and  Party 
Problems  in  the  United  States. 

206.  The  non-partisan  ballot 473 

From  the  National  Municipal  Review. 

207.  Adequate  representation  of  the  majority 475 

From  the  National  Municipal  Review. 

208.  Adequate  representation  of  the  minority 477 

From  the  Illinois  I>egislative  Reference  Bureau,  Constitutional 
Convention  Bulletins. 

209.  Evils  of  the  long  ballot 479 

From  the  Municipal  Association  of  Cleveland  for  the  Short 
Ballot  Movement  in  Ohio,  Report. 

210.  The  principle  of  the  short  ballot 481 

From  the  National  Short  Ballot  Association,  The  Doctrine  of 
the  Short  Ballot. 


CHAPTER  XXXVI  —  HONESTY  AND  EFFICIENCY  IN  OFFICE 

211.  Obstacles  to  intelligent  legislation 486 

From  the  American  Political  Science  Association,  Proceed- 
ings at  its  Fourth  Annual  Meeting. 

212.  The  legislative  reference  bureau 488 

From    the    Wisconsin   Legislative    Reference    Department, 
Publicity  Bulletin. 

213.  Defects  of  the  state  administration 490 

From    the    Illinois    Efficiency    and    Economy    Committee, 
Report. 

214.  Results  of  a  reorganized  state  administration 492 

From    the    Illinois    Efficiency    and    Economy    Committee, 
Report. 

215.  Need  of  a  federal  budget 494 

From  William  Howard  Taft,  Message  to  Congress. 

216.  Essentials  of  a  good  budget 496 

From  the  Academy  of  Political  Science,  Proceedings. 

217.  Results  of  the  commission  plan  of  government 498 

From  the  National  Municipal  Review. 

218.  Training  the  city  manager 500 

From  the  National  Municipal  Review. 


xxiv  CONTENTS 

PAGE 

CHAPTER  XXXVII  — THE  EXTENSION  OF  POPULAR  CONTROL 

219.  Constitutional  provision  for  direct  legislation 505 

From  the  Constitution  of  Oklahoma. 

220.  Initiative  and  Referendum  petitions 507 

From  the  Statutes  of  the  State  of  Missouri. 

221.  Helping  the  voters  to  make  laws 508 

From  the  Statutes  of  the  State  of  Oregon. 

222.  Constitutional  provision  for  the  Recall 510 

From  the  Constitution  of  Arizona. 

223.  An  example  of  how  the  Recall  is  used 512 

From  the  National  Miuiicipal  Review. 

224.  Popular  control  chiefly  a  threat 5x4 

From  the  National  Municipal  Review. 

CIL^PTER  XXXVIII  —  PUBLIC  OPINION 

225.  The  origin  of  our  personal  opinions 517 

From  A.   Lawrence   Lowell,   Public  Opinion   and  Popular 
Government. 

226.  The  importance  of  talk 519 

From     Edwin    Lawrence     Godkin,    Problems    of    Modern 
Democracy. 

227.  The  influence  of  the  leader 521 

From  Charles  Horton  Cooley,  Human  Nature  and  the  Social 
Order. 

228.  The  merits  of  Public  Opinion 523 

From  James  Bryce,  Modern  Democracies. 

229.  The  defects  of  Public  Opinion 525 

From  Edward  Alsworth  Ross,  Social  Control. 

230.  The  improvement  of  Public  Opinion 527 

From  Frank  W.  Blackmar  and  John  Lewis  Gillin,  Outlines 
of  Sociology. 

Index 531 


READINGS  IN 
AMERICAN  DEMOCRACY 

PART  I  —  FOUNDATIONS  IN  AMERICAN  DEMOCRACY 

CHAPTER  I 
THE   BACKGROUND    OF  AMERICAN   DEMOCRACY 
1.   Christopher  Columbus  discovers  America  ^ 

Of  fascinating  interest  to  students  of  American  history  is  the  pri-  Columbus 
vate  journal  of  Christopher  Columbus.  In  this  journal  the  daring  ^^^^  *^ 
navigator  recorded  the  daily  happenings  of  his  memorable  first 
voyage.  From  what  appears  to  be  an  abridgment  of  the  original 
journal,  we  learn  of  the  departure  from  Palos,  Spain,  on  Friday, 
August  3,  1492,  and  of  the  anxious  weeks  spent  in  search  of  the  Indies. 
Early  in  October,  1492,  there  is,  among  the  weary  mariners,  a  general 
expectation  of  finding  land  at  any  moment.  The  journal  describes 
the  latter  part  of  the  voyage  in  the  following  language: 

Sunday,  October  7.     For  some  time  all  of  the  vessels  had  been  The  Nina 
striving  to  outsail  one  another,  and  thus  to  be  in  a  better  position  to   ^^     -^^l^^^ 
gain  the  reward  promised  for  discovering  land.     At  sunrise,   the   land,  but  is 
Nina,  leading  the  caravels    by    reason    of    her    swiftness,    hoisted   °i'staken. 
a  flag  at  her  mast  head,  and  gave  the  signal  that  she  had  discovered 
land.    All  that  day  nothing  was  seen  of  land,  but  the  voyagers  ob- 
served flocks  of  birds  making  for  the  southwest,  and  from  this  it 
was  thought  that  land  lay  in  that  direction.    Knowing  that  the  Por- 
tuguese had  discovered  most  of  the  islands  they  possessed  by  attending 
to  the  flight  of  birds,  we  shifted  the  course  from  west  to  west  by  south- 
west.   We  sailed  in  the  night  nearly  five  leagues,  and  twenty-three  in 
the  day.  .  .  . 

^  From  Christopher  Columbus,  Journal.     Abridged  by  Las  Casas,  and  trans- 
lated from  the  Spanish  by  Thames  Ross  Williamson. 


•READINGS  IN  AMERICAN  DEMOCRACY 


The  sailors 
lose  patience. 


Signs  of 
land. 


Columbus 
sees  a  light. 


Land!  land! 


Wednesday,  October  lo.  By  day  and  night  we  made  fifty-nine 
leagues  progress;  as  it  was  customary  to  conceal  from  the  crew  the 
actual  distance  traversed,  the  men  were  told  that  the  distance  was 
but  forty-four  leagues.  At  this  stage  the  men  lost  all  patience,  and 
complained  of  the  length  of  the  voyage.  Columbus  encouraged  them 
as  best  he  could,  and  added  that  it  was  to  no  purpose  to  complain, 
for  having  come  so  far  they  had  nothing  to  do  but  to  continue  on  to 
the  Indies,  till  with  the  help  of  God,  they  should  arrive  there.  .  .  . 

Thursday,  October  ii.  The  crew  of  the  Pinta  picked  up  a  stick  which 
appeared  to  have  been  carved  with  an  iron  tool.  Members  of  the  same 
crew  also  picked  up  a  piece  of  cane,  (a  plant  which  grows  on  land), 
and  a  board.  The  crew  of  the  Nina  saw  other  signs  of  land,  including 
a  stalk  loaded  with  roseberries.  These  signs  encouraged  them,  and 
all  grew  cheerful.  We  sailed  till  sunset,  making  for  the  entire  day  a 
total  distance  of  twenty-seven  leagues. 

After  sunset  we  steered  the  original  course  west  and  sailed  twelve 
miles  an  hour  until  two  hours  after  midnight,  going  about  ninety 
miles,  which  are  twenty-two  leagues  and  a  half.  .  .  . 

At  ten  o'clock  that  evening,  whilst  standing  on  the  quarter-deck, 
the  Admiral  [^Columbus]  saw  a  light,  though  it  was  so  small  a  body 
that  he  could  not  be  sure  that  it  indicated  land.  He  called  to  Pero 
Gutierrez,  groom  of  the  King's  wardrobe.  This  man  was  informed 
of  what  the  Admiral  had  seen,  and  was  told  to  look.  He  did  so,  and 
saw  the  Hght.  The  Admiral  made  the  same  request  of  Rodrigo  San- 
chez of  Segovia,  whom  the  King  and  Queen  had  sent  with  the  squad- 
ron as  comptroller,  but  this  person  was  unable  to  see  the  Hght.  Later 
Columbus  perceived  the  hght  once  or  twice  again,  appearing  Uke 
the  light  of  a  wax  candle  moving  up  and  down.  He  believed  it  to 
indicate  land,  and  accordingly  directed  the  seamen  to  keep  a  strict 
watch  upon  the  fore-castle  and  to  look  diligently  for  land.  To  the 
man  who  should  first  see  land  Columbus  promised  a  silken  jacket, 
besides  the  reward  which  the  King  and  Queen  had  offered. 

At  two  o'clock  in  the  morning,  [October  12],  the  land  was  dis- 
covered at  two  leagues  distant,  by  a  sailor  named  Rodrigo  de  Triana. 
We  took  in  sail  and  remained  under  the  square-sail  lying  to  until 
day,  which  was  Friday.  Presently  we  perceived  people,  and  these 
were  naked.    Accompanied  by  an  armed  guard,  the  Admiral  landed 


THE  BACKGROUND   OF  AMERICAN  DEMOCRACY         3 

in  a  boat,  along  with  Martin  Alonzo  Pinzon,  and  Vicente  Yanez 
the  latter  being  commander  of  the  Nina.     The  Admiral  bore  the 
royal  standard,  while  Pinzon  and  Yanez  each  carried  a  banner  of 
the  Green  Cross,  containing  the  initials  of  the  names  of  the  King 
and  Queen.  .  .  . 

Arrived  on  shore,  Columbus  called  upon  all  present  to  bear  witness  The  landing 
that  he  took  possession  of  the  land  for  the  King  and  Queen  of  Spain,  °^  Columbus, 
and  thereupon  he  made  the  requisite  declarations.  Numbers  of 
the  people  of  the  island  straightway  collected  together.  Columbus 
saw  that  the  natives  were  very  friendly,  and  perceived  that  they  could 
be  more  easily  converted  to  the  Holy  Faith  by  gentle  means  than  by 
force.  Accordingly,  he  presented  them  with  some  red  caps,  and  with 
strings  of  beads  and  many  other  trifles  of  smaU  value,  whereupon  the 
natives  were  deUghted  and  became  wonderfully  attached  to  us.  .  .  . 


2.  Captain  John  Smith  on  conditions  at  Jamestown^ 

The  Spanish  had  not  been  in  America  long  before  the  French  turned   Lack  of 

their  attention  to  the  New  World.     The  EngUsh,  however,  did  not   P^^s^^^  ^t 

Jamestown, 
make  serious  attempts  to  colonize  America  until  toward  the  end  of 

the  sixteenth  century,  and  it  was  not  until  after  1600  that  their  efforts 
were  attended  by  success.  A  promising  English  settlement  was  made 
at  Jamestown,  Virginia,  in  1607,  but  for  several  years  this  was  so 
unsuccessful  that  at  length  his  Majesty's  Commissioners  in  Eng- 
land asked  Captain  John  Smith  for  an  explanation  of  the  colony's 
backwardness.  The  following  passages  illustrate  the  type  of  questions 
asked  by  the  Commissioners,  and  the  replies  made  by  Smith: 
Question  i.  Why  has  not  the  plantation  prospered,  although  you  The  effect 

left  it  in  so  good  a  condition?  °^  idleness 

and  care- 
Answer.  In  six  months  idleness  and  carelessness  brought  all  that    lessness. 

I  did  in  three  years  to  nothing;  and  of  five  hundred  I  left,  scarce 

threescore  remained;    and  had  Sir  Thomas  Gates  not  got  suppUes 

from  the  Bermudas,  I  think  they  had  been  all  dead  before  they 

could  be  supplied. 

Question  2.  Why  does  nothing  but  tobacco  come  from  this  country, 

although  the  country  is  good? 

^  From  Captain  John  Smith,  Works. 


READINGS  IN  AMERICAN  DEMOCRACY 


WTiy  the 
country 
yields  only 
tobaccx). 


Cause  of 
the  massacre. 


The  defects 
of  govera- 
ment. 


Answer.  Because  the  market  price  of  corn  is  such,  and  the  market 
price  of  tobacco  is  such,  that  a  man's  labor  at  tobacco  yields  more 
than  it  does  growing  corn.  Now  make  a  man's  labor  in  corn  worth 
threescore  pound,  and  in  tobacco  but  ten  pound  a  man,  and  they 
shall  have  corn  sufficient  to  entertain  all  comers,  and  shall  keep  their 
people  in  health  to  do  anything;  but  till  then,  there  will  be  Uttle 
or  nothing  to  any  purpose. 

Question  3.  What  do  you  beUeve  was  the  cause  of  the  massacre, 
and  had  the  savages  had  the  use  of  firearms  in  your  time,  or  when, 
or  by  whom  were  they  taught? 

Answer.  The  cause  of  the  massacre  was  the  want  of  martial  dis- 
cipline; and  because  they  would  have  all  the  Enghsh  had  by  destroy- 
ing those  they  found  so  carelessly  secure,  that  they  were  not  provided 
to  defend  themselves  against;  being  so  dispersed  as  they  were.  In 
my  time,  though  Captain  Newport  furnished  them  \\'ith  swords  by 
truck,  and  many  fugitives  did  the  Uke,  and  some  firearms  they  got 
accidentally:  yet  I  got  most  of  them  again;  and  it  was  death  to  him 
that  should  show  a  savage  the  use  of  firearms.  .  ,  . 

Question  6.  WTiat  think  you  are  the  defects  of  government  both 
here  and  there? 

Answer.  The  multipHcity  of  opinions  here,  and  officers  there 
makes  such  delays  by  questions  and  formalities,  that  as  much  time  is 
spent  in  complement  as  in  action.  Besides,  some  are  so  desirous  to 
employ  their  ships,  having  six  pounds  for  every  passenger,  and  three 
pounds  for  every  ton  of  goods,  at  which  rate  a  thousand  ships  may 
now  better  be  procured  than  one  at  the  first,  when  the  common  stock 
defrayed  aU  fraughts,  wages,  provisions  and  magazines,  whereby 
the  ships  are  so  pestered,  as  occasions  much  sickness,  disease  and 
mortaUty.  For  though  all  the  passengers  die  they  are  sure  of  their 
fraught;  and  then  aU  must  be  saisfied  with  orations,  disputations, 
excuses  and  hopes.  .  .  . 

But  fewer  adventurers  here  will  adventure  any  more  till  they  see 
the  business  better  established,  although  there  be  some  so  wilfuUy 
improvident  that  they  care  for  nothing  but  to  get  thither,  and  then  if 
their  friends  be  dead,  or  want  themselves,  they  die  or  live  but  poorly 
for  want  of  necessaries.  To  think  that  the  old  planters  can  relieve 
them  were  too  much  simplicity.    For  if  in  England  it  is  difficult  for 


THE   BACKGROUND   OF  AMERICAN  DEMOCRACY         5 

persons  themselves  well-provided  to  feed  two  cr  three  strangers, 
how  much  more  difficult  is  it  in  Virginia,  where  such  persons  are 
themselves  in  want?  .  .  . 


3.   The  Pilgrims  resolve  to  leave  Holland  * 

So  long  as  governments  and  joint  stock  companies  dominated  the  Significance 
colonization  of  the  New  World,  the  settlements  made  little  progress,  py^j^^ 
The  first  tenacious  and  really  successful  colonists  were  individuals 
and  groups  of  individuals  who  came  to  America,  not  to  seek  treasure 
or  easily  gotten  gains,  but  to  build  homes,  to  enjoy  freedom  of  con- 
science, and  to  practice  local  self-government.  Perhaps  the  best 
known  of  these  early  home-seekers  were  the  Pilgrims.  At  the  begin- 
ning of  the  seventeenth  century  several  groups  of  these  people  had  left 
England  to  settle  in  Holland,  but  though  they  enjoyed  many  advan- 
tages among  the  Dutch,  they  at  length  began  to  consider  the  desira- 
biUty  of  removing  to  some  other  place.  In  ths  following  passage  the 
reasons  which  led  the  Pilgrim  congregation  to  leave  Holland  are 
recounted  by  Wilham  Bradford,  one  of  their  number: 

First,  they  saw  by  experience  that  the  hardships  of  the  country  Hardships 
were  such  that  relatively  few  others  would  join  them,  and  fewer  still  "^  Holland, 
would  remain  with  them  in  Holland.  Many  who  came  and  many 
more  who  desired  to  come,  could  not  stand  the  continual  labor  and 
hard  fare  and  other  inconveniences  which  they  themselves  had  been 
content  to  endure.  For  though  many  desired  to  enjoy  the  ordinances 
of  God  in  their  purity,  and  the  liberty  of  the  gospel,  yet,  alas,  they 
preferred  to  submit  to  bondage,  with  danger  to  their  conscience, 
rather  than  endure  these  privations.  Some  even  preferred  prisons  in 
England  to  this  liberty  in  Holland,  with  such  hardships.  .... 

Secondly,  they  saw  that  though  the  people  generally  bore  these    Premature 
difficulties  very  cheerfully,  and  with  resolute  courage,  being  in  the   °  .  ^^^" 
best  strength  of  their  years;   yet  old  age  began  to  steal  on  many  of 
them,  and  their  great  and  continual  labors,  with  other  crosses  and 
sorrows,  hastened  it  before  their  time.  .  .  . 

Thirdly,  as  necessity  was  a  task-master  over  them,  so  they  them-   Hardships 
selves  were  forced  to  be,  not  only  over  their  servants,  but  in  a  sort    ^^ 
^  From  William  Bradford,  History  of  Plymouth  Plantation,  Chapter  iv. 


READINGS  IN  AMERICAN  DEMOCRACY 


temptations 
experienced 
by  their 
children. 


The 

missionary 

spirit. 


And  so  they 
resolve  to 
remove  to 
America. 


over  their  dearest  children.  This  wounded  the  hearts  of  many  a 
loving  father  and  mother,  and  produced  many  sad  and  sorrowful 
effects.  Many  of  their  children,  who  were  of  the  best  disposition, 
and  who  had  learned  to  bear  the  yoke  in  their  youth  and  were  will- 
ing to  bear  part  of  their  parents'  burden,  were  often  so  oppressed 
with  their  labours,  that  though  their  minds  were  free  and  willing, 
their  bodies  bowed  under  the  weight  and  became  decrepit  in  early 
youth.  .  .  . 

But  stiU  more  lamentable,  and  of  all  sorrows  most  heavy  to  be 
borne,  was  that  many  of  the  children,  influenced  by  these  conditions, 
and  the  great  licentiousness  of  the  young  people  of  the  country, 
and  the  many  temptations  of  the  place,  were  led  by  evil  example  into 
dangerous  courses,  getting  the  rein  off  their  necks  and  leaving  their 
parents.  Some  became  soldiers,  others  embarked  upon  voyages  by 
sea,  and  others  upon  worse  courses,  tending  to  dissoluteness  and  the 
danger  of  their  souls,  to  the  great  grief  of  the  parents  and  the  dis- 
honor of  God.  So  they  saw  their  posterity  woidd  be  in  danger  to 
degenerate  and  become  corrupt. 

Last  and  not  least,  they  cherished  a  great  hope  and  inward  zeal 
of  laying  good  foundations,  or  at  least  of  making  some  way  towards 
it,  for  the  propagation  and  advance  of  the  gospel  of  the  kingdom  of 
Christ  in  the  remote  parts  of  the  world,  even  though  they  should  be 
but  stepping  stones  to  others  in  the  performance  of  so  great  a  work. 

These  and  some  other  similar  reasons,  moved  them  to  resolve  upon 
their  removal,  which  they  afterwards  prosecuted  in  the  face  of  great 
difficulties,  .  .  . 

The  place  they  fixed  their  thoughts  upon  was  sornewhere  in  those 
vast  and  unpeopled  countries  of  America,  which  were  fruitful  and  fit 
for  habitation,  though  devoid  of  all  civiHzed  inhabitants  and  given 
over  to  savages,  differing  httle  from  the  wild  beasts  themselves.  .  .  . 

After  many  things  had  been  alleged  for  and  against  the  journey, 
it  was  fully  decided  by  the  majority  to  undertake  the  enterprise, 
and  to  prosecute  it  by  the  best  means  they  could.  .  .  . 


THE  BACKGROUND   OF  AMERICAN  DEMOCRACY         7 

4.   The  **  Mayflower  "  reaches  New  England  ^ 

Determined  to  try  their  fortunes  in  the  New  World,  the  Pilgrims  The 
returned  to  England,  and  having  overcome  a  number  of  preUminary   ^etghs™^*^ 
obstacles,  at  length  set  sail  for  America.   After  a  tedious  and  distress-   anchor  off 
ing  voyage  of  many  weeks,  they  anchored  in  Cape  Cod  harbor  on 
the  eleventh  of  "November,  1620.    Before  going  ashore  they  adopted 
what  is   known  as   the   Mayflower   Compact,  by  means  of   which 
they  formed  themselves  into  a  body  pohtic.     After  agreeing  to  this 
compact,  they  chose  John  Carver  to  act  as  their  governor  for  the 
first  year.     The  following  extracts  from  Bradford's  History  of  Plym- 
outh Plantation  describe  the  landing  of    the  Pilgrims: 

.  .  .  Necessity  called  on  them  to  look  out  for  a  place  of  habitation.  A  party 
Having  brought  a  large  shallop  with  them  from  England,  stowed  in  ^o^^J^ore!*" 
quarters  in  the  ship,  they  now  got  her  out,  and  set  their  carpenters 
to  work  to  trim  her  up;  but  being  much  bruised  and  battered  in  the 
foul  weather  they  saw  she  would  be  long  mending.  So  a  few  of  them 
volunteered  to  go  by  land  and  explore  the  neighboring  parts,  whilst  the 
shallop  was  put  in  order;  particularly  since,  as  they  entered  the  bay, 
there  seemed  to  be  an  opening  some  two  or  three  leagues  off,  which 
the  captain  thought  was  a  river.  It  was  conceived  there  might  be 
danger  in  the  attempt;  but  seeing  them  resolute,  sixteen  of  them, 
well-armed;  were  permitted  to  go,  under  charge  of  Captain  Standish. 

They  set  forth  on  the  15th  of  November,  being  landed  by  the  Some  Indians 
ship's  boat,  and  when  they  had  marched  about  the  space  of  a  mile  ^"  ^  °^ 
by  the  seaside,  they  espied  five  or  six  persons  with  a  dog  coming  toward 
them.  They  were  savages;  but  they  fled  back  into  the  woods,  followed 
by  the  English,  who  wished  to  see  if  they  could  speak  with  them, 
and  to  discover  if  there  were  more  lying  in  ambush.  But  the  Indians, 
seeing  themselves  followed,  left  the  woods,  and  ran  along  the  sands 
as  hard  as  they  could,  so  our  men  could  not  come  up  with  them,  but 
followed  the  track  of  their  feet  several  miles.  .   .   . 

Night  coming  on,  they  made  their  rendezvous,  and  set  sentinels,  The  next  day 
and  rested  in  quiet.  Next  morning  they  again  pursued  the  Indians' 
tracks,  tiU  they  came  to  a  great  creek,  where  they  had  left  the  sands 
and  turned  into  the  woods.  But  they  continued  to  follow  them  by 
guess,  hoping  to  find  their  dwellings;  but  soon  they  lost  both  the 
^  From  William  Bradford,  History  of  Plymouih  Plantation,  Chapter  x. 


8 


READINGS  IN  AMERICAN  DEMOCRACY 


they  find 
some  Indian 
com,  part  of 
which   they 
take  back  to 
the  ship 
with  them. 


The 

exploration 
is  continued. 


Indians  and  themselves,  and  fell  into  such  thickets  that  their  clothes 
and  armour  were  injured  severely;  but  they  suffered  most  from  want 
of  water.  At  length  they  found  some,  and  refreshed  themselves  with 
the  first  New  England  water  they  had  drunk;  and  in  their  great 
thirst  they  found  it  as  pleasant  as  wine  or  beer  had  been  before. 
Afterwards  they  directed  their  course  towards  the  other  shore,  for 
they  knew  it  was  only  a  neck  of  land  they  had  to  cross  over.  At 
length  they  got  to  the  sea-side,  and  marched  to  this  supposed,  river, 
and  by  the  way  found  a  pond  of  fresh  water,  and  shortly  after  a 
quantity  of  cleared  ground  where  the  Indians  had  formerly  planted 
corn;  and  they  found  some  of  their  graves. 

Proceeding  further,  they  saw  stubble  where  corn  had  been  grown 
the  same  year,  and  also  found  a  place  where  a  house  had  lately  been, 
with  some  planks,  and  a  great  kettle  and  heaps  of  sand  newly  banked, 
under  which  they  found  several  large  baskets  fiUed  with  corn,  some 
in  the  ear  of  various  colours,  which  was  a  very  goodly  sight  they 
having  never  seen  any  Uke  it  before.  This  was  near  the  supposed 
river  that  they  had  come  to  seek.  When  they  reached  it,  they  found 
that  it  opened  into  two  arms,  with  a  high  chff  of  sand  at  the  entrance, 
but  more  likely  to  be  creeks  of  salt  water  than  fresh,  they  thought. 
There  was  good  harbourage  for  their  shallop,  so  they  left  it  to  be 
further  explored  when  she  was  ready.  The  time  allowed  them 
having  expired,  they  returned  to  the  ship,  lest  the  others  should  be 
anxious  about  their  safety.  They  took  part  of  the  corn  and  buried 
the  rest;  and  so,  like  the  men  from  Eschol,  carried  with  them  of  the 
fruits  of  the  land,  and  showed  their  brethren;  at  which  the  rest 
were  very  glad,  and  greatly  encouraged. 

After  this,  the  shallop  being  ready,  they  set  out  again  for  the  better 
reconnoitering  of  the  place.  The  captain  of  the  ship  desired  to  go 
himself,  so  there  were  some  thirty  men.  However,  they  found  it  to 
be  no  harbour  for  ships,  but  only  for  boats.  They  also  found  two 
of  the  Indians'  houses  covered  with  mats,  and  some  of  their  imple- 
ments in  them;  but  the  people  had  run  away  and  could  not  be  seen. 
They  also  found  more  corn,  and  beans  of  various  colours.  These 
they  brought  away,  intending  to  give  them  full  satisfaction  when 
they  should  meet  with  any  of  them,  —  as  about  six  months  after- 
wards they  did.  ... 


THE  BACKGROUND  OF  AMERICAN  DEMOCRACY  9 

5.    The  struggles  of  the  early  colonists  ^ 

Once  it  had  been  demonstrated  that  the  American  wilderness   The  work 

could  be  fasliioned  into  homes,  colonists  flocked  to  the  New  World.    °. 

pioneer, 

Clusters  of  settlements  formed  aU  along  the  Atlantic  seaboard,  while 
back  from  the  coast  the  clearing  of  the  solitary  planter  came  to  be 
a  common  sight.  Though  the  type  of  settlement  varied  with  the 
geography  of  the  region,  it  is  generally  true  that  the  pioneering 
process  was  everywhere  the  same.  From  Maine  to  Georgia  it  involved 
fashioning  a  rude  dwelling,  clearing  the  forest,  and  planting  crops. 
The  following  description  of  pioneering  in  New  England,  therefore, 
may  be  taken  as  also  typical  of  the  settler's  work  elsewhere  in  the 
colonies: 

.  .  .  The  planters  are  necessitated  to  struggle  with  many  difh-   and  the 
culties.    To  clear  a  farm  covered  with  a  thick  growth  of  large  trees,     '  cuities 

°  °  '    conirontmg 

such  as  generally  abound  in  this  country,  is   a  work  of  no  small   him. 

magnitude.  Especially  is  this  true  when,  as  is  usually  the  fact,  it 
is  to  be  done  by  a  single  man;  and  still  more  especially,  when  that 
man  is  poor,  and  obliged  to  struggle  with  many  other  discour- 
agements.  .  .  . 

When  a  planter  commences  this  undertaking,  he  sets  out  for  his 
farm  with  his  axe,  gun,  blanket,  provision  and  ammunition.  With 
these  he  enters  the  forest  and  builds  himself  a  shed  by  setting  up 
poles  at  four  angles,  crossing  them  with  other  poles,  and  covering 
the  whole  with  the  bark,  leaves  and  twigs  of  trees,  except  the  south 
side,  which  is  purposely  left  open  to  the  sun  and  a  fire. 

Under  this  shelter  he  dresses  his  food,  and  makes  his  bed  of  straw   He  con- 
on  which  he  sleeps  soundly  beneath  his  blanket.     Here  he  usually   ^^^f'^  ^ 
continues  through  the  season,  and  sometimes  without  the  sight  of   clears  the 
any  other  human  being.     After  he  has  completed  this  shelter,  he  S'''''^'^'^' 
begins  to  clear  a  spot  of  ground,  i.  e.  to  remove  the  forest  by  which 
it  is  covered.  .  ,  . 

After  the  field  is  burned  over,  his  next  business  is  to  break  it  up.    prepares  it 
The  instrument  employed  for  this  purpose  is  a  large  and  strong  har-   ^*"'  pl^"^"^8, 
row.  ...  It  is  drawn  over  the  surface  a  sufficient  number  of  times 

*  From  Timothy  Dwight,  Travels  in  New  England  and  New  York.    New  Haven, 
1821.    Vol.  II,  pp.  464-469. 


lO 


READINGS   IN  AMERICAN  DEMOCRACY 


and  builds 
a  house  and 
a  bam. 


Isolation 
handicaps 
the  pioneer. 


Lack  of 
medical  aid. 


The  problem 
of  getting 
food. 


to  make  it  mellow,  and  afterwards  to  cover  the  seed.    A  plough  here 
would  be  of  no  use,  as  it  would  soon  be  broken  to  pieces  by  the  roots 
of  the  trees.    In  the  same  manner  the  planter  proceeds  to  another 
field,  and  to  another,  until  his  farm  is  sufficiently  cleared  to  satisfy 
his  wishes. 

The  first  house  which  he  builds  is  formed  of  logs  .  .  .  with  a 
stone  chimney  in  the  middle.  His  next  labour  is  to  procure  a  barn; 
generally  large,  well  framed,  covered  and  roofed.  Compared  with 
his  house,  it  is  a  palace.  But  for  this  a  sawmill  is  necessary,  and  is 
therefore  built  as  early  as  possible. 

It  will  be  easily  beheved  that  the  labours  already  mentioned  must 
be  attended  by  fatigue  and  hardships,  sufficient  to  discourage  any 
man  who  can  five  tolerably  on  his  native  soil.  But  the  principal 
sufferings  of  these  planters,  in  the  early  periods  of  their  business, 
spring  from  quite  other  sources.  The  want  of  neighbors  to  assist 
them,  the  want  of  convenient  implements,  and  universally  the  want 
of  those  means  without  which  the  necessary  business  of  life  cannot 
be  carried  on,  even  comfortably;  is  among  their  greatest  difficulties. 
The  first  planters  at  Haverhill  and  Newbury,  on  the  Connecticut 
river,  were  obliged  to  go  to  Charlestown,  more  than  seventy 
miles,  to  get  their  corn  ground  .  .  .  and  to  obtain  assistance  to 
raise  the  frame  of  every  building.  At  that  time  there  was  no  road 
between  these  towns.  The  travelling  was,  of  course,  all  done  on 
the  river.  .  .  . 

In  sickness,  and  other  cases  of  suffering  and  danger,  these  planters 
are  often  without  the  aid  either  of  a  physician,  or  a  surgeon.  To 
accidents  they  are  peculiarly  exposed  by  the  nature  of  their  employ- 
ments, while  to  remedies,  besides  such  as  are  supplied  by  their  own 
skill  and  patience,  they  can  scarcely  have  any  access.   .    .    . 

As  most  of  the  first  planters  were  poor,  and  as  many  of  them  had 
numerous  families  of  small  children,  the  burden  of  providing  food 
for  them  was  heavy,  and  discouraging.  Some  relief  they  found,  at 
times,  in  the  game  with  which  the  forests  were  formerly  replenished. 
But  supplies  from  that  source  were  always  precarious,  and  could 
never  be  relied  on  with  safety.  Fish,  in  the  wild  season,  might  often 
be  caught  in  the  streams,  and  in  the  lakes.  In  desperate  cases  the 
old  settlements,  though  frequently  distant,  were  always  in  possession 


THE  BACKGROUND  OF  AMERICAN  DEMOCRACY        II 

of  abundance,  and,  in  the  mode  either  of  commerce  or  of  charity, 
would  certainly  prevent  them  and  theirs  from  perishing  with  hunger. 

To  balance  these  evils,  principally  suffered  by  the  earliest  class   The 
of  planters,   they  had   some  important   advantages.     Their  land,   ^f^pj^^g^^^ 
usually  covered  with  a  thick  stratum  of  vegetable  mould,  was  emi-   life, 
nently  productive.     Seldom  were  their  crops  injured  by  the  blast, 
or  the  mildew,  and  seldom  were  they  devoured  by  insects.    When 
the  wheat  was  taken  from  the  ground,  a  rich  covering  of  grass  was 
regularly  spread  over  the  surface,  and  furnished  them  with  an  ample 
supply  of  pasture  and  hay  for  their  cattle. 

Besides  the  abundance  of  their  crops,  they  had  the  continual 
satisfaction  of  seeing  their  embarrassments  daily  decreasing,  and 
their  wealth  and  their  comforts  daily  increasing.  .  .  .  The  planter 
is  cheered  by  the  continual  sight  of  improvement  in  everything 
about  him.  His  fields  increase  in  number  and  beauty.  His  means 
of  living  are  enlarged.  The  wearisome  part  of  his  labour  is  grad- 
ually lessened.  His  neighbors  multiply,  and  his  troubles  annually 
recede.  .  .    . 

Among  the  enjoyments  of  these  people,  health,  and  hardihood.   The  earlj- 
ought  never  to  be  forgotten.     The  toils  which  they  undergo,  the    Jg°^^^^^^  ^^"^^ 
difficulties  which  they  surmount,  and  the  hazards  which    they  es-   active,  and 
cape,  all  increase  their  spirits  and  their  firmness.  .  .  .  The  minds  of   optumstic 
these  settlers  therefore  possess  the  energy  which  results  from  health, 
as  well  as  that  which  results  from  activity,  and  few  persons  taste 
the  pleasures  which  fall  to  their  lot,  with  a  keener  relish.    The  com- 
mon troubles  of  life,  often  deeply  felt   by  persons  in  easy  circum- 
stances, scarcely  awaken  in  them  the  slightest  emotion.     Cold  and 
heat,  snow  and  rain,  labour  and  fatigue,  are  regarded  by  them  as 
trifles,  deserving  no  attention.     The  coarsest  food  is  pleasant  to 
them,  and  the  hardest  bed  refreshing.  .  .  . 


6.    Growth  of  the  English  colonies  ^ 

Though  she  entered  the  field  relatively  late,  England  was  destined   Rapid 
to  dominate  the  colonization  of  North  America.    In  1664  the  Dutch   "^'^'^^^^^y" 
surrendered  New  Amsterdam  to  the  EngHsh,  and  in  1763  France 
^  From  Benjamin  Franklin,  Works. 


12 


READINGS  IN  AMERICAN  DEMOCRACY 


Cheap  land 

encourages 
the  settler 
to  marry 
early. 


Position  of 
the  laborer 
in  America. 


Franklin 
speculates 
as  to  the 
effect  of 
the  future 
increase 
in  the 
American 
population. 


relinquished  her  claim  to  the  eastern  half  of  the  Mississippi  Valley. 
These  concessions  on  the  part  of  Holland  and  France  left  England 
in  undisputed  possession  of  the  Atlantic  seaboard.  For  a  long  time 
prior  to  1763,  moreover,  the  number  of  English  subjects  in  America 
had  been  increasing  rapidly,  so  rapidly,  indeed,  as  to  occasion  fre- 
quent comment.  In  1751,  for  example,  Benjamin  Franklin  antici- 
pated the  growing  power  of  the  British  in  America  in  the  following 
terms: 

.  .  .  Land  being  thus  plenty  in  America,  and  so  cheap  as  that 
a  labouring  man,  that  understands  husbandry,  can  in  a  short  time 
save  money  enough  to  purchase  a  piece  of  new  land  sufficient  for 
a  plantation,  whereon  he  may  subsist  a  family,  such  are  not  afraid 
to  marry.  For  if  they  even  look  far  enough  forward  to  consider 
how  their  children  when  grown  up,  are  to  be  provided  for,  they 
see  that  more  land  is  to  be  had  at  rates  equally  easy,  all  circum- 
stances considered.  Hence  marriages  in  America  are  more  general, 
and  more  generally  early,  than  in  Europe.  And  if  it  is  reckoned  there, 
that  there  is  but  one  marriage  per  annum  among  one  hundred  per- 
sons, perhaps  we  may  here  reckon  two,  and  if  in  Europe  they  have 
but  four  births  to  a  marriage,  ...  we  may  here  reckon  eight,  of 
which  if  one  half  grow  up,  and  our  marriages  are  made,  .  .  .  our 
people  must  at  least  be  doubled  every  twenty  years. 

But  notwithstanding  this  increase,  so  vast  is  the  territory  of 
North  America,  that  it  will  require  many  ages  to  settle  it  fully. 
And  till  it  is  fully  settled,  labour  will  never  be  cheap  here,  where 
no  man  continues  long  a  laborer  for  others,  but  gets  a  plantation  of 
his  own.  No  man  continues  long  a  journeyman  to  a  trade,  but  goes 
among  those  new  settlers  and  sets  up  for  himself,  etc.  Hence  labour 
is  no  cheaper  now,  in  Pennsylvania,  than  it  was  thirty  years  ago, 
though  so  many  thousand  labouring  people  have  been  imported.  .  .  . 

There  is  ...  no  bound  to  the  prolific  nature  of  plants  or  animals, 
but  what  is  made  by  their  crowding  and  interfering  with  each  other's 
means  of  subsistence.  If  the  face  of  the  earth  were  vacant  of  other 
plants,  it  might  be  gradually  sowed  and  overspread  with  one  kind 
only,  as  for  instance,  with  fennel;  and  if  it  were  empty  of  other  in- 
habitants, it  might  in  a  few  ages  be  replenished  from  one  nation  only, 
as  for  instance,  with  Englishmen. 


THE  BACKGROUND  OF  AMERICAN  DEMOCRACY        13 

Thus  there  are  suposed  to  be  now  upwards  of  one  million  English 
souls  in  North  America,  .  .  .  and  yet  perhaps  there  is  not  one  the 
fewer  in  Britain,  but  rather  many  more,  on  account  of  the  employ- 
ment the  colonies  ailord  to  manufacturers  at  home.  This  million 
doubling,  suppose  but  once  in  twenty-five  years,  will  in  another 
century  be  more  than  the  people  of  England,  and  the  greatest  number 
of  EngKshmen  will  be  on  this  side  of  the  water.  What  an  accession 
of  power  to  the  British  Empire  by  sea  as  well  as  land!  What  in- 
crease of  trade  and  navigation!  What  numbers  of  ships  and  seamen! 
We  have  been  here  but  little  more  than  one  hundred  years,  and  yet 
the  force  of  our  privateers  in  the  late  war,  united,  was  greater,  both 
in  men  and  guns,  than  that  of  the  whole  British  navy  in  Queen  EHz- 
abeth's  time.  How  important  an  affair  then  to  Britain  is  the  present 
treaty  for  settUng  the  bounds  between  her  colonies  and  the  French, 
and  how  careful  should  she  be  to  secure  room  enough,  since  on  the 
room  depends  so  much  the  increase  of  her  people.  .  .  . 


Questions  on  the  foregoing  Readings 

1.  On  what  date  did  Columbus  leave  Spain  on  his  first  voyage  of 

discovery? 

2.  Why  do  you  suppose  Columbus  deceived  his  crew  as  to  the  actual 

distance  traversed? 

3.  What  signs  of  land  were  encountered  on  October  nth? 

4.  Describe  the  first  sight  of  land  on   the   morning  of  October  12th. 

5.  What  did  Columbus  do  when  he  went  ashore? 

6.  What  two   European  powers  preceded   England  in   the  coloniza- 

tion of  the  New  World? 

7.  How  did  Captain  John  Smith  explain  the  failure  of  the  colony 

at  Jamestown  to  progress? 

8.  Why  did  the  early  settlers  at  Jamestown  prefer  growing  tobacco 

to  growing  corn? 

9.  What   was  Smith's  suggestion  as  to  the  method   of  causing  the 

colonists  to  prefer  corn  culture  to  tobacco  raising? 

10.  What  did  Smith  give  as  the  cause  of  the  Jamestown  massacre? 

11.  What,   according   to   Smith,   were   the   defects   of  government  in 

Virginia? 

12.  What  is  the  significance  of  the  Pilgrims? 

13.  When  did  the  Pilgrims  settle  in  Holland? 

14.  Describe  the  life  of  the  Pilgrims  in  Holland. 


14  READINGS  IN  AMERICAN  DEMOCR.\CY 

15.  Give  several  reasons  why  the  Pilgrims  resolved  to  remove  from 

Holland  to  America. 

16.  What  did  they  do  when  they  had  made  this  resolve? 

17.  Describe  the  landing  of  the  Pilgrims  in  New  England. 

18.  Where  did  they  find  some  corn  which  the  Indians  had  hidden? 

19.  Describe  the  work  of  the  early  settler  in  clearing  the  forest  and 

preparing  the  soil  for  planting. 

20.  To  what  extent  was  isolation  a  handicap  to  the  early  settler? 

21.  Name  some  of  the  advantages  of  pioneer  life. 

22.  What  can  be  said  as  to  the  health  and  spirits  of  the  early  pioneers? 

23.  What  was  the  relation  between  cheap  land  and  early  marriages  in 

Colonial  America? 

24.  Why  was  labour  well  paid  in  early  America? 

25.  What  was  Benjamin  Franklin's  prediction  as  to  the  future  popu- 

lation of  America? 


CHAPTER   II 

THE   ORIGIN   OF  AMERICAN   DEMOCRACY 

7.  King  John  is  forced  to  sign  the  Magna  Charta  i 

At  the  same  time  that  the  early  American  colonists  were  building   Significance 
homes  in  the  wilderness,' they  were  also  developing  their  ideas  of   ment^signed 
government.    Without  exception  these  early  colonists  were  from  the  by  King 
monarchical  countries  of  Europe,  yet  a  considerable  number  brought   ^^le  "^ 
to  their  new  home  certain  definite  beliefs  as  to  rights  of  the  individual. 
Some  of  the  settlers  who  came  from  England,  for  example,  looked  back 
to  the  Magna  Charta  as  a  definite  limitation  upon  the  royal  power. 
This  instnunent,  signed  by  King  John  on  June  15,  1 2 1 5,  reduced  many 
of  the  vague  rights  of  Englishmen  to  tangible  form.     As  a  definite 
body  of  law,  it  constitutes  the  basis  of  all  later  English  and  American 
written  statements  of  free  institutions.     The  first  ten  amendments 
to  our  Federal  Constitution,  as  well  as  the  bill  of  rights  attached  to 
the  constitutions  of  the  several  American  states,  have  been  called 
by  Lord  Bryce  "the  legitimate  children  of  Magna  Charta."     The 
following  are  the  most  significant  passages  in  this  celebrated  doc- 
ument : 

.  .  .  We  also  have  granted  to  all  the  freemen  of  our  kingdom,  for   a  grant  of 

us  and  for  our  heirs  for  ever,  all  the  underwritten  Hberties,  to  be  had   f.!_^"^? 

'  _  uberties. 

and  holden  by  them  and  their  heirs,  of  us  and  our  heirs  for  ever.  ,  .  . 

And  for  holding  the  general  council  of  the  kingdom  concerning   This  clause 
the  assessment  of  aids,  except  in  the  three  cases  aforesaid,  and  for    ,^^  became 

'  ^  the  germ  of 

the  assessing  of  scutage,  we  shall  cause  to  be  summoned  the  arch-   representa- 

bishops,  bishops,  abbots,   earls,  and  greater  barons  of  the  realm,   ^°^  ^°  7^^ 

singly  by  our  letters.     And  furthermore,  we  shall  cause  to  be  sum-   Commons. 

moned  generally,  by  our  sheriffs  and  bailiffs,  all  others  who  hold  of 

us  in  chief,  for  a  certain  day  .  .  .    and  to  a  certain  place;  and  in  all 

1  From  the  Magna  Charta. 

IS 


i6 


READINGS  IN  AMERICAN  DEMOCRACY 


Justice  IS 
guaranteed. 


A  check  on 
the  king. 


Both  the 
king  and  the 
barons  agree 
to  respect 
the  terms 
of  the 
charter. 


letters  of  such  summons  we  will  declare  the  cause  of  such  summons. 
And,  summons  being  thus  made,  the  business  shall  proceed  on  the 
day  appointed,  according  to  the  advice  of  such  as  shall  be  present, 
although   all   that   were   summoned   come   not.  .  .  . 

Nothing  from  henceforth  shall  be  given  or  taken  for  a  writ  of 
inquisition  of  hfe  or  limb,  but  it  shall  be  granted  freely,  and  not 
denied.  ... 

No  freeman  shall  be  taken  or  imprisoned,  or  dispossessed,  or  out- 
lawed, or  banished,  or  any  ways  destroyed,  nor  wiU  we  pass  upon 
him,  nor  will  we  send  upon  him,  unless  by  the  lawful  judgment  of  his 
peers,  or  by  the  law  of  the  land. 

We  will  seU  to  no  man,  we  will  not  deny  to  any  man,  either  justice 
or  right.  ... 

And  whereas,  for  the  honor  of  God  and  the  amendment  of  our 
kingdom,  and  for  the  better  quieting  the  discord  that  has  arisen 
between  us  and  our  barons,  we  have  granted  all  these  things  afore- 
said; \^aUing  to  render  them  firm  and  lasting,  we  do  give  and  grant 
our  subjects  the  underwritten  security,  namely,  that  the  barons 
may  choose  five  and  twenty  barons  of  the  kingdom,  whom  they  think 
convenient;  who  shall  take  care,  with  all  their  might,  to  hold  and 
observe,  and  cause  to  be  observed,  the  peace  and  Hberties  we  have 
granted  them.  .  .  . 

Wherefore  we  will  and  firmly  enjoin  .  .  .  that  all  men  in  our 
kingdom  have  and  hold  all  the  aforesaid  liberties,  rights  and  con- 
cessions, truly  and  peaceably,  freely  and  quietly,  fully  and  wholly 
to  themselves  and  their  heirs,  of  us  and  our  heirs,  in  all  things  and 
places,  for  ever,  as  is  aforesaid.  It  is  also  sworn,  as  well  on  our  part 
as  on  the  part  of  the  barons,  that  all  the  things  aforesaid  shall  be 
observed  in  good  faith,  and  without  evil  subtilty.  Given  under  our 
hand,  ...  in  the  meadow  called  Runingmede,  between  Windsor 
and  Staines,  the  15th  day  of  June,  in  the  17th  year  of  our  reign. 


8.   The  Pilgrims  agree  to  establish  a  pure  democracy  ^ 

When  the  Pilgrims  set  out  for  America  they  took  with  them  the 
memory  of  all  those  traditional  guarantees  which  had  first  been  put 
1  From  the  Mayflower  Compact,  1620. 


THE  ORIGIN  OF  AMERICAN  DEMOCRACY  17 

in  writing  by  the  Magna  Charta.    In  addition  they  carried  with  them   The  Pilgrims 
the  experience  of  the  community  self-government  which  had  been   ^J^^^Q^^^g^  ^ 
a  feature  of  their  several  years'  residence  in  Holland.    When,  there-    Compact, 
fore,  they  dropped  anchor  in  Cape  Cod  harbor  on  November  11,  1620, 
they  had  at  least  two  political  principles  in  mind:    First,  the  neces- 
sity   of    protecting    individuals    against    governmental    aggression; 
second,  the  importance  of  established  government  in  a  new  land. 
Before  landing,  they  accordingly   "by  mutual  consent  entered  into 
a  solemn  combination,  as  a  body  poUtic,  to  submit  to  such  govern- 
ment and  governors,  laws  and  ordinances,  as  shoiild  by  a  general 
consent,  from  time  to  time,  be  made  choice  of,  and  assented  unto." 
The  text  of  this  Mayflower  Compact  follows: 

In  the  name  of  God,  Amen.    We  whose  names  are  underwritten,   Preamble, 
the  loyal  subjects  of  our  dread  sovereign  Lord,  King  James,  by  the 
grace  of  God,  of  Great  Britain,  France,  and  Ireland  King,  Defender 
of  the  faith,  etc. 

Having  undertaken  for  the  glory  of  God,  and  advancement  of  the  They  agree 
Christian  faith,  and  honor  of  our  King  and  country,  a  voyage  to   ^^Jj^^g'j^^ 
plant  the  first  colony  in  the  northern  parts  of  Virginia;    do  by  these   of  a  civil 
presents  solemnly  and  mutually,  in  the  presence  of  God  and  of  one     °  Y  P°  '. 
another,  covenant  and  combine  ourselves  together  into  a  civil  body   new  home, 
pohtic,  for  our  better  ordering  and  preservation,  and  furtherance 
of  the  ends  aforesaid;   and  by  virtue  hereof  to  enact,  constitute,  and 
frame  such  just  and  equal  laws,  ordinances,  acts,  constitutions,  and 
ofl&ces,  from  time  to  time,  as  shall  be  thought  most  meet  and  con- 
venient for  the  general  good  of  the  colony;   unto  w'hich  we  promise 
all  due  submission  and  obedience. 

In  witness  whereof,  we  have  hereunto  subscribed  our  names,  at 
Cape  Cod,  the  eleventh  of  November,  in  the  reign  of  our  sovereign 
Lord  King  James,  of  England,  France,  and  Ireland  the  eighteenth, 
and  of  Scotland  the  fifty- fourth,  Anno  Dom.  1620. 

John  Carver  Edward  Tilly  Digery  Priest  The  signers 

William  Bradford  John  Tilly  Thomas  Williams        of  the 

Edward  Winslow  Francis  Cooke  Gilbert  Winslow  „  ^^  °^^ 

William  Brewster  Thomas  Rogers  Edmund  Margeson 

Isaac  AUerton  Thomas  Tinker  Peter  Brown 

Miles  Standish  John  Ridgdale  Richard  Bitteridge 

John  Alden  Edward  Fuller  George  Soule 


i8 


READINGS  IN  AMERICAN  DEMOCRACY 


Samuel  Fuller 
Christopher  Martin 
William  Mullins 
William  White 
Richard  Warren 
John  Howland 
Stephen  Hopkins 


John  Turner 
Francis  Eaton 
James  Chilton 
John  Craxton 
John  Billington 
Joses  Fletcher 
John  Goodman 


Richard  Clark 
Richard  Gardiner 
John  Allerton 
Thomas  English 
Edward  Doten 
Edward  Leister 


In  1619  the 
colony  of 
Virginia  was 
granted  a 
representa- 
tive 
assembly. 


Greeting! 


Object  of 
the  ordi- 
nance. 


9.   Representative  government  in  America  ^ 

The  English  had  settled  at  Jamestown,  Virginia,  in  1607,  but 
for  several  years  the  colonists  suffered  great  hardships  under  what 
resembled  miUtary  government.  In  1619,  Sir  George  Yeardley  ar- 
rived with  the  commission  of  governor-general  from  the  Company 
which  had  planted  the  colony.  ReaUzing  the  stimulating  effect 
which  self-government  would  have  upon  the  colonists,  the  Com- 
pany ordered  Yeardley  to  see  that  "a  general  assembly  should  be 
held  yearly  once,  whereat  were  to  be  present  the  Governor  and 
Council,  with  two  burgesses  from  each  plantation  freely  to  be  elected 
by  the  inhabitants  thereof;  this  assembly  to  have  power  to  make 
and  ordain  whatsoever  laws  and  orders  should  by  them  be  thought 
good  and  profitable  for  our  subsistence."  The  result  was  the  es- 
tabUshment,  in  1619,  of  the  Virginia  House  of  Burgesses,  the  first 
representative  assembly  in  America.  The  following  passages  are 
extracts  from  the  Ordinance  for  Virginia,  162 1,  which  granted  to  the 
colony  for  the  future  the  same  form  of  government: 

To  all  people,  to  whom  these  presents  shall  come,  be  seen,  or  heard, 
the  Treasurer,  Council,  and  Company  of  Adventurers  and  Planters 
for  the  city  of  London  for  the  first  Colony  of  Virginia,  send  greeting. 

Know  ye,  that  we  .  .  .  have  thought  fit  to  make  our  entrance, 
by  ordering  and  establishing  such  supreme  councils,  as  may  not 
only  be  assisting  to  the  Governor  for  the  time  being,  in  the  adminis- 
tration of  justice,  and  the  executing  of  other  duties  to  this  office 
belonging,  but  also,  by  their  vigilant  care  and  prudence,  may  pro- 
vide, as  well  for  a  remedy  of  all  inconveniences,  growing  from  time 
to  time,  as  also  for  the  advancing  of  increase,  strength,  stability, 
and  prosperity  of  the  said  colony: 

1  From  the  Ordinance  for  Virginia,  1621. 


THE  ORIGIN  OF  AMERICAN  DEMOCRACY  19 

We  therefore,  ...  by  authority  directed  to  us  from  his  Majesty   Two 

under  the  Great  Seal,  upon  mature  deliberation,  do  hereby  order   supreme 

•^  councils 

and  declare,  that,  from  hence  forward,  there  shall  be  two  supreme   established. 

councils  in  Virginia,   for  the  better  government  of  the  said  colony 

aforesaid. 

The  one  of  which  councils,  to  be  called  the  Council  of  State,  (and   The  Council 

whose  office  shall  chiefly  be  assisting,  with  their  care,  advice,  and  °^  f^^^^ 

and 

circumspection,  to  the  said  Governor),  shall  be  chosen,  nominated, 
placed,  and  displaced,  from  time  to  time,  by  us,  the  said  Treasurer, 
Council,  and  Company,  and  our  successors.  ... 

Which  said  counsellors  and  council  we  earnestly  pray  and  desire,  its  duties, 
and  in  his  JVIajesty's  name  strictly  charge  and  command,  that  .  .  . 
they  bend  their  care  and  endeavours  to  assist  the  said  Governor; 
first  and  principally,  in  the  advancement  of  the  honour  and  service 
of  God,  and  the  enlargement  of  his  kingdom  amongst  the  heathen 
people;  and  next,  in  erecting  of  the  said  colony  in  due  obedience  to 
his  Majesty,  and  all  lawful  authority  from  his  Majesty's  directions; 
and  lastly,  in  maintaining  the  said  people  in  justice  and  Christian 
conversation  amongst  themselves,  and  in  strength  and  ability  to 
withstand  their  enemies.  .  .  . 

The  other  council,  more  generally  to  be  called  by  the  Governor,    The  second 
once  yearly,  and  no  oftener,  but  for  very  extraordinary  and  important    "'^'^^'^  ^ 
occasions,  shall  consist,  for  the  present,  of  the  said  Council  of  State,    sembly. 
and  of  two  burgesses  out  of  every  town,  hundred,  or  other  particular 
plantation,   to  be  respectively   chosen  by   the  inhabitants:    which 
council  shall  be  called  the  General  Assembly,  wherein  (as  also  in 
the  said  Council  of  State)  all  matters  shall  be  decided,  determined 
and  ordered,  by  the  greater  part  of  the  voices  then  present ;  reserving 
to  the  Governor  always  a  negative  voice. 

And  this  General  Assembly  shall  have  free  power  to  treat,  consult,  Its  powers, 
and  conclude,  as  well  of  all  emergent  occasions  concerning  the  public 
weal  of  the  said  colony  and  every  part  thereof,  as  also  to  make,  ordain, 
and  enact  such  general  laws  and  orders,  for  the  behoof  of  the  said 
colony,  and  the  good  government  thereof,  as  shall,  from  time  to  time, 
appear  necessary  or  requisite;  ... 

Provided,  that  no  law  or  ordinance,  made  in  the  said  General 
Assembly,  shall  be  or  continue  in  force  or  validity,  urdess  the  same 


20 


READINGS   IN  AMERICAN  DEMOCRACY 


Limitations 
upon  the 
power  of 
the 
Assembly. 


shall  be  solemnly  ratified  and  confirmed,  in  a  General  Quarter  Court 
of  the  said  Company  here  in  England,  and  so  ratified,  be  returned 
to  them  under  our  seal;  it  being  our  intent  to  afford  the  like  measure 
also  unto  the  said  colony,  that  after  the  government  of  the  said  colony 
shall  once  have  been  well  framed,  and  settled  accordingly,  .  .  .  and 
the  same  shall  have  been  so  by  us  declared,  no  orders  of  court  after- 
wards shall  bind  the  said  colony,  unless  they  be  ratified  in  like  manner 
in  the  General  Assemblies.  .  .  . 


Three  towns 
are  settled 
in  the  Con- 
necticut 
vallej'. 


The  neces- 
sity of  es- 
tabUshed 
government 
is  recog- 
nized. 


10.   A  republic  established  in  the  Connecticut  wilderness  ^ 

In  June,  1636,  Reverend  Thomas  Hooker  of  Newtown,  (now 
Cambridge,  Massachusetts),  and  his  entire  congregation  set  out 
on  foot  for  the  Connecticut  valley,  driving  their  cattle  before  them, 
and  carrying  their  household  goods  in  wagons.  They  founded 
Hartford  on  the  Connecticut  river,  while  near  by,  on  the  same  river, 
other  congregations  from  Dorchester  and  Watertown  settled  Windsor 
and  Wethersfield.  In  January,  1638-1639,  the  three  towns  united 
themselves  into  a  repubhc  under  an  instrument  known  as  the  Funda- 
mental Orders  of  Connecticut.  The  following  are  extracts  from  this 
document,  called  by  many  authorities  the  first  written  constitution 
in  America: 

.  .  .  Forasmuch  as  it  hath  pleased  the  Almighty  God  ...  so 
to  order  and  dispose  of  things  that  we  the  inhabitants  and  residents 
of  Windsor,  Hartford  and  Wethersfield  are  now  .  .  .  dwelling  in  and 
upon  the  river  of  Connecticut  and  the  lands  thereunto  adjoining;  And 
well  knowing  that  where  a  people  are  gathered  together  the  word 
of  God  requires  that  to  maintain  the  peace  and  union  of  such  a  people 
there  should  be  an  orderly  and  decent  government, .  .  .  [yfe]  do  there- 
fore associate  and  conjoin  ourselves  to  be  as  one  public  State  or  Com- 
monwealth, and  do,  for  ourselves  and  our  successors  and  such  as  shall 
be  adjoined  to  us  at  any  time  hereafter,  enter  into  combination  and 
confederation  together,  to  maintain  and  preserve  the  liberty  and 
purity  of  the  gospel  of  our  Lord  Jesus  ...  as  also  the  discipline  of 
the  churches.  .  .  . 

As  also  in  our  civil  afi'airs  to  be  guided  and  governed  according 
■  *  From  the  Fundamental  Orders  oj  Connecticut,  1638-1639. 


THE  ORIGIN  OF  AMERICAN  DEMOCRACY  21 

to  such  laws,  rules,  orders  and  decrees  as  shall  be  made,  ordered  and 

decreed,  as  follows: 

It  is  ordered  .  .  .  that  there  shall  be  yearly  two  general  assembhes   Civil  govern 

or  courts,  the  one  the  second  Thursday  in  April,  the  other  the  second   ^.^!^\  P™' 

vided  for. 

Thursday  in  September,  following.  The  first  shall  be  called  the 
Court  of  Election,  wherein  shall  be  yearly  chosen  ...  so  many 
magistrates  and  other  public  officers  as  shall  be  found  requisite.  ,  .  . 

Which  choice  shall  be  made  by  all  that  are  admitted  freemen  and   The 
have  taken  the  oath  of  fidehty,  and  do  cohabit  within  this  jurisdic-   ^ufifrage. 
tion,  (having  been  admitted  inhabitants  by  the  major  part  of  the 
town  wherein  they  live)  or  the  major  part  of  such  as  shall  be  then 
present.  .  .  . 

It  is  ordered  .  .  .  that  no  person  be  chosen  Governor  above  once   Election  of 

in  two  years,  and  that    the   Governor   be   always   a   member   of   ^^ 

Governor. 

some  approved  congregation,  and  formerly  of  the  magistracy  within 
this  jurisdiction;  and  all  the  magistrates  freemen  of  this  Common- 
wealth; and  that  no  magistrate  or  other  pubhc  officer  shall  execute 
any  part  of  his  or  their  office  before  they  are  severally  sworn.  .  .  . 

It  is  ordered  .  .  .  that  Windsor,  Hartford  and  Wethersfield  shall  Represen- 
have  pow^,  each  town,  to  send  .  .  .  deputies  to  every  General  ^^^^°^- 
Court,  and  whatsoever  other  towns  shall  be  hereafter  added  to  this 
jurisdiction,  they  shall  send  as  many  deputies  as  the  Court  shall 
think  best;  .  .  .  which  deputies  shall  have  the  power  of  the  whole 
town  to  give  their  votes  and  allowance  to  all  such  laws  and  orders 
as  may  be  for  the  public  good,  and  unto  which  the  said  towns  are 
to  be  bound.  .  .  . 

It  is  ordered  .  .  .  that  every  General  Court  (except  such  as  through   Membership 
neglect  of  the  Governor  and  the  greatest  part  of  magistrates  the   °   ^ 
freemen  themselves  do  call)  shall  consist  of  the  Governor  (or  some   Court, 
one  chosen  to  moderate  the  Court),  and  four  other  magistrates  at 
least,  with  the  major  part  of  the  deputies  of  the  several  towns  legally 
chosen. 

And  in  case  the  freemen,  or  major  part  of  them,  through  neglect 
or  refusal  of  the  Governor  and  major  part  of  the  magistrates,  shall 
caU  a  court,  it  shall  consist  of  the  major  part  of  the  freemen  that 
are  present,  or  their  deputies.  .  .  . 

In  which  said  General  Courts  shall  consist  the  supreme  power  of 


22 


READINGS  IN  AMERICAN  DEMOCRACY 


Powers  of 
the 

General 
Court. 


Internal 
organi- 
zation. 


the  Commonwealth,  and  they  only  shall  have  power  to  make  laws 
or  repeal  them,  to  grant  levies,  to  admit  freemen,  .  .  ,  and  also 
shall  have  power  to  call  either  Court  or  magistrate  or  any  other 
person  whatsoever  into  question  for  any  misdemeanor.  And  \jhe 
General  Court]  may  for  just  cause  displace  or  deal  otherwise,  ac- 
cording to  the  nature  of  the  offence.  And  also  [it]  may  deal  in  any 
other  matter  that  concerns  the  good  of  the  Commonwealth,  except 
election  of  magistrates,  which  shall  be  done  by  the  whole  body  of 
freemen. 

In  which  [General]  Court  the  Governor  or  moderator  shall  have 
power  to  order  the  Court  to  give  liberty  of  speech,  and  silence  un- 
seasonable and  disorderly  speakings,  to  put  all  things  to  vote,  and 
in  case  the  vote  be  equal,  to  have  the  casting  voice.  But  none  of 
these  Courts  shall  be  adjourned  or  dissolved  without  the  consent 
of  the  major  part  of  the  Court.  .  .  . 


Strained 
relations 
with  Eng- 
land lead 
more  and 
more  often 
to  colonial 
protests  and 
declarations 
of  rights. 


Preamble  to 
the  Virginia 
Bill  of 
Rights. 

Natural 
rights. 


11.   Virginia  asserts  the  principles  of  just  government^ 

In  the  century  and  a  half  following  the  establishment  of  the  first 
English  colonies  on  the  Atlantic  seaboard  the  principles  of  local 
self-government  had  found  widespread  acceptance  among  the  Ameri- 
cans. As  relations  with  the  mother  country  became  more  and  more 
strained,  it  was  evident  that  many  of  the  colonies  considered  these 
principles  in  danger.  The  determination  of  the  Americans  to  main- 
tain their  rights  against  English  aggression  led,  more  and  more 
often,  to  colonial  protests  against  English  colonial  policies,  and  to 
declarations  of  rights.  One  of  the  most  important  of  these  declara- 
tions is  the  Virginia  Bill  of  Rights,  adopted  by  a  convention  that 
met  in  Williamsburg,  May  6,  1776.  The  following  are  some  of  the 
more  significant  passages  from  this  document: 

Made  by  the  Representatives  of  the  good  people  of  Virginia, 
assembled  in  full  and  free  convention,  which  rights  do  pertain  to 
them  and  their  posterity  as  the  basis  and  foundation  of  government. 

That  all  men  are  by  nature  equally  free  and  independent,  and  have 
certain  inherent  rights,  of  which,  when  they  enter  into  a  state  of 
society,  they  cannot  by  any  compact,  deprive  or  divest  their  posterity; 
1  From  the  Virginia  Bill  of  Rights,  1776. 


THE  ORIGIN  OF  AMERICAN  DEMOCRACY  23 

namely,  the  enjoyment  of  life  and  liberty  with  the  means  of  acquiring 
and  possessing  property,  and  pursuing  and  obtaining  happiness 
and  safety. 

That  all  power  is  vested  in,  and  consequently  derived  from,  the   Basis  of 
people;   that  magistrates  are  their  trustees  and  servants,  and  at  all  government. 
times  amenable  to  them. 

That  government  is,  or  ought  to  be,  instituted  for  the  common  The  object 
benefit,  protection  and  security  of  the  people,  nation,  or  community;  °^  govem- 
of  all  the  various  modes  and  forms  of  government,  that  is  best  which 
is  capable  of  producing  the  greatest  degree  of  happiness  and  safety, 
and  is  most  effectually  secured  against  the  danger  of  maladminis- 
tration; and  that,  when  a  government  shall  be  found  inadequate 
or  contrary  to  these  purposes,  a  majority  of  the  community  hath 
an  indubitable,  unalienable  and  indefeasible  right  to  reform,  alter 
or  abolish  it,  in  such  manner  as  shall  be  judged  most  conducive  to 
the  public  weal.  ... 

That  the  legislative,  executive  and  judicial  powers  should  be  sep-  The  three- 
arate  and  distinct;  and  that  the  members  thereof  may  be  restrained    ?     '^'^^' 

sion  of 

from  oppression,  by  feeUng  and  participating  the  burdens  of  the  govern- 
people,  they  should,  at  fixed  periods,  be  reduced  to  a  private  station,    ™^^tal 
return  into  that  body  from  which  they  were  originally  taken,  and 
the  vacancies  be  supplied  by  frequent,  certain  and  regular  elections, 
in  which  all,  or  any  part  of  the  former  members  to  be  again  eligible 
or  inehgible,  as  the  laws  shall  direct. 

That  all  elections  ought  to  be  free,  and  that  all  men  having  sufficient  The  suf- 
evidence  of  permanent  common  interest  with,  and  attachment  to  ^""^g^'  ^^^ 
the  community,  have  the  right  of  suffrage,  and  cannot  be  taxed,  or 
deprived  of  their  property  for  pubUc  uses,  without  their  own  consent, 
or  that  of  their  representatives  so  elected;  nor  bound  by  any  law 
to  which  they  have  not  in  like  manner  assented,  for  the  public 
good.  .  .  . 

That  in  all  capital  or  criminal  prosecutions,  a  man  hath  a  right   Protection 
to  demand  the  cause  and  nature  of  his  accusation,  to  be  confronted   °;  ! ,    '": 

,  ...  dividual  in 

with  the  accusers  and  witnesses,  to  call  for  evidence  in  his  favor,  and   his  legal 

to  a  speedy  trial  by  an  impartial  jury  of  twelve  men  of  his  vicinage,    '"'^l^tions. 

without  whose  unanimous  consent  he  cannot  be  found  guilty;    nor 

can  he  be  compelled  to  give  evidence  against  himself;   that  no  man 


24 


READINGS  IN  AMERICAN   DEMOCRACY 


Bail  and 
punish- 
ments. 
Jury  trial. 


Freedom  of 
the  press. 


The  condi- 
tions of 
free  govern- 
ment. 


Freedom  of 
worship. 


be  deprived  of  his  liberty,  except  by  the  law  of  the  land  or  the  judg^ 
ment  of  his  peers. 

That  excessive  bail  ought  not  to  be  required,  nor  excessive  fines 
imposed,  nor  cruel  and  unusual  punishments  inflicted.  .  .  . 

That  in  controversies  respecting  property,  and  in  suits  between 
man  and  man,  the  ancient  trial  by  jury  of  twelve  men  is  preferable 
to  any  other,  and  ought  to  be  held  sacred. 

That  the  freedom  of  the  press  is  one  of  the  great  bulwarks  of 
hberty,  and  can  never  be  restrained  but  by  despotic  governments.  .  ,  . 

That  the  people  have  a  right  to  uniform  government;  and,  there- 
fore, that  no  government  separate  from  or  independent  of  the  govern- 
ment of  Virginia,  ought  to  be  erected  or  estabhshed  within  the  Umits 
thereof. 

That  no  free  government,  or  the  blessing  of  liberty,  can  be  pre- 
served to  any  people,  but  by  a  firm  adherence  to  justice,  moderation, 
temperance,  frugality  and  virtue,  and  by  a  frequent  recurrence  to 
fundamental  principles. 

That  religion,  or  the  duty  which  we  owe  to  our  Creator,  and  the 
manner  of  discharging  it,  can  be  directed  only  by  reason  and  con- 
viction, not  by  force  or  violence;  and  therefore  all  men  are  equally 
entitled  to  the  free  exercise  of  religion,  according  to  the  dictates 
of  conscience;  and  that  it  is  the  duty  of  all  to  practise  Christian 
forbearance,  love  and  charity  toward  each  other.  .  .  . 


The  circum- 
stances 
leading  up 
to  the 
Declaration 
of  Independ- 
ence in 
1776. 


12.   The  colonies  declare  their  independence  ^ 

In  1774  the  First  Continental  Congress  met  at  Philadelphia  to 
protest  against  the  attitude  of  Great  Britain  toward  the  colonies. 
Instead  of  improving,  however,  the  situation  grew  worse,  and  in 
April,  177s,  the  Americans  clashed  with  British  troops  at  Concord 
and  Lexington.  Actual  warfare  necessitating  some  joint  action  on 
the  part  of  the  colonies,  a  Second  Continental  Congress  was  con- 
vened in  Philadelphia  on  May  10,  1775.  On  June  7,  1776,  Richard 
Henry  Lee  of  Virginia  submitted  to  the  Congress  three  resolutions, 
the  first  of  which  declared  "That  these  United  Colonies  are,  and 
of  right  ought  to  be,  free  and  independent  States,  that  they  are  ab- 
•  From  the  Declaration  of  Independence,  1776. 


THE  ORIGIN  OF  AMERICAN   DEMOCRACY  25 

solved  from  all  allegiance  to  the  British  Crown,  and  that  all  political 
connection  between  them  and  the  State  of  Great  Britain  is,  and 
ought  to  be,  totally  dissolved."  The  resolutions  were  seconded  by 
John  Adams,  and  a  declaration  to  the  effect  of  the  said  first  resolu- 
tion was  drawn  up.  This  was  the  celebrated  Declaration  of  Inde- 
pendence, which  on  July  4,  1776,  was  agreed  to,  and  signed  by  John 
Hancock  as  president  of  the  Congress.  The  complete  text  of  the 
declaration  follows:  , 

When  in  the  course  of    human  events,  it  becomes  necessary  for   Preliminary 
one  people  to  dissolve  the  poUtical  bands  which  have  connected   statement, 
them  with  another,  and  to  assume  among  the  powers  of  the  earth, 
the  separate  and  equal  station  to  which  the  laws   of    Nature  and 
of  Nature's  God  entitle  them,  a  decent  respect  to  the  opinions  of 
mankind  requires  that  they  should  declare  the  causes  which  impel 
them  to  the  separation. 
iWe  hold  these  truths  to  be  self-evident,  that  all  men  are  created    The  nature 

equal,  that  they  are  endowed  by  their  Creator  with  certain  un-        gwern- 

.  ment. 

aHenable  rights,  that  among  these  are  hfe,  Uberty  and  the  pursuit 

of  happiness.      That    to  secure  these  rights,  governments  are  in- 
stituted among  men,  deriving   their  just  powers  from  the  consent 
of  the  governed, 
That  whenever    any  form  of   government    becomes   destructive   Under  what 

of  these  ends,  it  is  the  right  of  the  people  to  alter  or  to  aboHsh  it,    "^"^^i™' 

stances  a 

and  to  institute  new  government,   laying    its   foundation  on  such   government 

principles  and  organizing  its  powers  in  such  form,  as  to  them  shall   o"ght  to  be 

altered  or 
seem  most  hkely  to  effect  their  safety  and   happiness.      Prudence,    abolished. 

indeed,  will  dictate  that  governments  long  estabhshed  should  not 
be  changed  for  light  and  transient  causes;  and  accordingly  all  ex- 
perience hath  shown,  that  mankind  are  more  disposed  to  suffer, 
while  evils  are  sufferable,  than  to  right  themselves  by  abohshing 
the  forms  to  which  they  are  accustomed.  But  when  a  long  train  of 
abuses  and  usurpations,  pursuing  invariably  the  same  object  evinces 
a  design  to  reduce  them  under  absolute  despotism,  it  is  their  right, 
it  is  their  duty,  to  throw  off  such  Government,  and  to  provide  new 
guards  for  their  future  security.  —  Such  has  been  the  patient  suffer- 
ance of  these  colonies;  and  such  is  now  the  necessity  which  constrains 
them  to  alter  their  former  systems  of  government.    The  history  of 


26 


READINGS  IN  AMERICAN  DEMOCRACY 


The  colo- 
nies submit 
a  list  of 
injuries 
which  they 
have  sus- 
tained at 
the  hands 
of  the 
EngUsh 
monarch. 


the  present  King  of  Great  Britain  is  a  history  of  repeated  injuries 
and  usurpations,  all  having  in  direct  object  the  establishment  of  an 
absolute  tyranny  over  these  states.  To  prove  this,  let  facts  be 
submitted  to  a  candid  world. 

He  has  refused  his  assent  to  laws,  the  most  wholesome  and 
necessary  for   the   pubhc  good. 

He  has  forbidden  his  governors  to  pass  laws  of  immediate  and 
liressing  importance,  unless  suspended  in  their  operation  till  his 
assent  should  be  obtained;  and  w^hen  so  suspended,  he  has  utterly 
neglected  to  attend  to  them. 

He  has  refused  to  pass  other  laws  for  the  accommodation  of 
large  districts  of  people,  unless  those  people  would  relinquish  the 
right  of  representation  in  the  legislature,  a  right  inestimable  to 
them  and  formidable  to  tyrants  only. 

He  has  called  together  legislative  bodies  at  places  unusual,  un- 
comfortable, and  distant  from  the  depository  of  their  public  records, 
for  the  sole  purpose  of  fatiguing  them  into  compliance  with  his 
measures. 

He  has  dissolved  representative  houses  repeatedly,  for  oppos- 
ing with  manly  firmness  his  invasions  on  the  rights  of  the  people. 

He  has  refused  for  a  long  time,  after  such  dissolutions,  to  cause 
others  to  be  elected;  whereby  the  legislative  powers,  incapable 
of  annihilation,  have  returned  to  the  people  at  large  for  their  exer- 
cise; the  state  remaining  in  the  mean  time  exposed  to  aU  the  dangers 
of  invasion  from  without,  and  convulsions  within. 

He  has  endeavoured  to  prevent  the  population  of  these  states; 
for  that  purpose  obstructing  the  laws  of  naturahzation  of  for- 
eigners; refusing  to  pass  others  to  encourage  their  migration  hither, 
and  raising  the  conditions  of  new   appropriations  of  lands. 

He  has  obstructed  the  administration  of  justice,  by  refusing  his 
assent  to  laws  for  estabhshing  judiciary  powers. 

He  has  made  judges  dependent  on  his  will  alone,  for  the  tenure 
of  their  offices,  and  the  amount  and  payment  of  their  salaries. 

He  has  erected  a  multitude  of  new  offices,  and  sent  hither  swarms 
of  officers  to  harass  our  people,  and  eat  out  their  substance. 

He  has  kept  among  us,  in  times  of  peace,  standing  armies  with- 
out the  consent  of  our  legislature. 


THE  ORIGIN  OF  AMERICAN  DEMOCR.\CY  27 

He  has  affected  to  render  the  military  independent  of  and  superior 
to  the  civil  power. 

He  has  combined  with  others  to  subject  us  to  a  jurisdiction  foreign 
to  our  constitution,  and  unacknowledged  by  our  laws;  giving  his 
assent  to  their  acts  of  pretended  legislation: 

For  quartering  large  bodies  of  armed  troops  among  us: 

For  protecting  them,  by  a  mock  trial,  from  punishment  for  any 
murders  which  they  should  commit  on  the  inhabitants  of  these  states: 

For  cutting  off  our  trade  with  aU  parts  of  the  world: 

For  imposing  taxes  on  us  without  our  consent: 

For  depriving  us  in  many  cases,  of  the  benefits  of  trial  by  jury: 

For  transporting  us  beyond  seas  to  be  tried  for  pretended  offences: 

For  abolishing  the  free  system  of  Enghsh  laws  in  a  neighbouring 
province,  establishing  therein  an  arbitrary  government,  and  enlarging 
its  boundaries  so  as  to  render  it  at  once  an  example  and  fit  instru- 
ment for  introducing  the  same  absolute  rule  into   these  colonies: 

For  taking  away  our  charters,  aboUshing  our  most  valuable 
laws,  and  altering  fundamentally  the  forms    of    our    governments: 

For  suspending  our  own  legislature,  and  declaring  themselves 
invested  with  power  to  legislate  for  us  in  all  cases  whatsoever. 

He  has  abdicated  government  here,  by  declaring  us  out  of  his 
protection  and  waging  war  against  us. 

He  has  plundered  our  seas,  ravaged  our  coasts,  burnt  our  towns, 
and  destroyed  the  hves  of  our  people. 

He  is  at  this  time  transporting  large  armies  of  foreign  mercenaries 
to  complete  the  works  of  death,  desolation  and  tyranny,  already 
begun  with  circimistances  of  cruelty  and  perfidy  scarcely  paralleled 
in  the  most  barbarous  ages,  and  totally  unworthy  the  head  of  a 
civilized  nation. 

He  has  constrained  our  fellow  citizens  taken  captive  on  the 
high  seas  to  bear  arms  against  their  country',  to  become  the  execu- 
tioners of  their  friends  and  brethren,  or  to  fall  themselves  by  their 
hands. 

He  has  excited  domestic  insurrections  amongst  us,  and  has  en- 
deavoured to  bring  on  the  inhabitants  of  our  frontiers,  the  merciless 
Indian  savages,  whose  known  rule  of  warfare,  is  an  undistinguished 
destruction  of  aU  ages,  sexes  and  conditions. 


28 


READINGS  IN  AMERICAN  DEMOCRACY 


The 
colonies 
have  re- 
peatedly 
appealed 
against  the 
tyrannous 
attitude  of 
the  king, 
but  in  vain. 


In  view  of 
the  facts 
submitted 
in  this  doc- 
ument the 
colonies  de- 
clare them- 
selves free 
and  inde- 
pendent 
states. 


In  every  stage  of  these  oppressions  we  have  petitioned  for  re- 
dress in  the  most  humble  terms:  Our  repeated  petitions  have  been 
answered  only  by  repeated  injury.  A  prince,  whose  character  is  thus 
marked  by  every  act  which  may  define  a  tyrant,  is  unfit  to  be  the 
ruler  of  a  free  people. 

Nor  have  we  been  wanting  in  attention  to  our  British  brethren. 
We  have  warned  them  from  time  to  time  of  attempts  by  their  legis- 
lature to  extend  an  unwarrantable  jurisdiction  over  us.  We  have 
reminded  them  of  the  circumstances  of  our  emigration  and  settle- 
ment here.  We  have  appealed  to  their  native  justice  and  magnanim- 
ity, and  we  have  conjured  them  by  the  ties  of  our  common  kindred 
to  disavow  these  usurpations,  which  would  inevitably  interrupt 
our  connections  and  correspondence.  They  too  have  been  deaf 
to  the  voice  of  justice  and  of  consanguinity.  We  must,  therefore, 
acquiesce  in  the  necessity,  which  denounces  our  separation,  and 
hold  them,  as  we  hold  the  rest  of  mankind,  enemies  in  war,  in 
peace  friends. 

We,  therefore,  the  Representatives  of  the  United  States  of  America, 
in  General  Congress,  assembled,  appealing  to  the  Supreme  Judge 
of  the  world  for  the  rectitude  of  our  intentions,  do,  in  the  name, 
and  by  authority  of  the  good  people  of  these  colonies,  solemnly 
publish  and  declare,  That  these  United  Colonies  are,  and  of  right 
ought  to  be  free  and  independent  states;  that  they  are  absolved 
from  all  allegiance  to  the  British  Crown,  and  that  all  political  con- 
nection between  them  and  the  State  of  Great  Britain,  is  and  ought 
to  be  totally  dissolved;  and  that  as  free  and  independent  states, 
they  have  full  power  to  levy  war,  conclude  peace,  contract  alliances, 
establish  commerce,  and  to  do  all  other  acts  and  things  which 
independent  states  may  of  right  do.  And  for  the  support  of  this 
declaration,  with  a  firm  reliance  on  the  protection  of  Divine  Provi- 
dence, we  mutually  pledge  to  each  other  our  lives,  our  fortunes 
and  our  sacred  honor. 


Questions  on  the  foregoing  Readings 

I.    What,  according  to  Lord  Bryce,  are  "  the  legitimate  children  of 
Magna  Charta"? 


THE  ORIGIN  OF  AMERICAN  DEMOCRACY  29 

2.  To  what  extent  may  it  be  claimed  that  the  principle  of  repre- 

sentation in  the  House  of  Commons  goes  back  to  the  Magna 
Charta? 

3.  What  does  the  Magna  Charta  say  concerning  justice? 

4.  What  guarantee  did  the  Magna  Charta  provide  in  order  that  the 

promises  contained  in  this  document  should   be   carried  into 
effect? 

5.  In  what  terms  did  the  King  and  the  barons  agree  to  observe  the 

Magna  Charta? 

6.  What  two  political  principles  did  the  Pilgrims  have  in  mind  when 

they  dropped  anchor  in  Cape  Cod  harbor? 

7.  Why  did  the  Pilgrims  agree  to  establish  a  civil  body  politic  in 

their  new  home? 

8.  Name  some  of  the  signers  of  the  Mayflower  Compact. 

9.  What  were  the  circumstances  surrounding  the  establishment  of 

the  Virginia  House  of  Burgesses  in  1619? 

10.  What  was  the  object  of  the  Ordinance  for  Virginia? 

11.  Name  the  two  supreme  councils  which  the  ordinance  established. 

12.  What  persons  were  to  constitute  the  membership  of   the  second 

council? 

13.  What  were  the  powers  of  this  council? 

14.  What  limitations  were  placed  upon  its  powers? 

15.  Briefly   describe    the   origin   of   the   three    Connecticut   towns   of 

Windsor,  Hartford  and  Wethersfield. 

16.  Why  did  the  inhabitants  of  these  three  towns  come  together  to 

establish  a  joint  government? 

17.  Define  the  suffrage  under  the  Connecticut  Fundamental  Orders. 

18.  Who  were  to  be  members  of  the  General  Court? 

19.  What  were  the  powers  of  the  General  Court? 

20.  What  is  the  date  of  the  Virginia  Bill  of  Rights? 

21.  What  did  this  bill  of  rights  say  concerning   the   "  inherent  rights  " 

of  men? 

22.  What,  according  to  this  bill  of  rights,  is  the  basis  of  government? 

23.  What  was  declared  to  be  the  object  of  government? 

24.  What  did  this  bill  of  rights  say  concerning  the  legal  rights  of   the 

individual? 

25.  Outline  the  contents  of  the  Declaration  of  Independence. 

26.  W^hy  did  the  colonies  feel  that  this  declaration  was  necessary? 


CHAPTER   III 


THE  DEVELOPMENT   OF  AMERICAN   DEMOCRACY 


Political 
development 
in  early 
America. 


The  New 
England 
Confedera- 
tion, 1643. 


Purpose  of 
the  colo- 
nies in 
uniting. 


13.  Four  colonies  combine  for  mutual  defense  ^ 

Political  development  in  the  British  colonies  of  North  America 
proceeded  along  two  lines  at  the  same  time.  On  the  one  hand,  there 
was  a  development  of  democratic  institutions  in  local  government. 
As  we  have  seen  in  the  last  chapter,  this  development  culminated 
in  the  Declaration  of  Independence  and  the  triumph  of  state 
sovereignty.  On  the  other  hand,  there  was,  for  more  than  a  century 
preceding  the  Revolution,  a  growing  tendency  toward  union  among 
the  colonies.  The  first  definite  attempt  at  union  occurred  in  1643, 
under  the  name  of  the  New  England  Confederation.  This  consisted 
of  a  league  between  Massachusetts,  Plymouth,  Connecticut  and 
New  Haven.  The  chief  purpose  of  the  Confederation  was  mutual 
defense  against  the  Indians  in  their  midst,  the  French  on  the  north, 
and  the  Dutch  in  New  Netherland.  The  following  are  the  most 
significant  passages  of  the  agreement  between  the  four  colonies: 

Whereas  we  all  came  into  these  parts  of  America,  with  one  and 
the  same  end  and  aim,  namely,  to  advance  the  Kingdom  of  our  Lord 
Jesus  Christ,  and  to  enjoy  the  hberties  of  the  Gospel,  in  purity  with 
peace;  and  whereas  in  our  settling  ...  we  are  further  dispersed 
upon  the  seacoasts  and  rivers  than  was  at  first  intended,  so  that  we 
cannot  with  convenience  communicate  in  one  government  and 
jurisdiction;  and  whereas  we  hve  encompassed  with  people  of  several 
nations,  and  strange  languages,  which  hereafter  may  prove  injurious 
to  us,  and  our  posterity:  And  forasmuch  as  the  natives  have  formerly 
committed  sundry  insolencies  and  outrages  upon  several  plantations 
of  the  English,  and  have  of  late  combined  against  us.  And  seeing 
by  reason  of  the  sad  distractions  in  England,  which  they  have  heard 
1  From  the  New  England  Confederation,  1643. 
30 


DEVELOPMENT  OF  AMERICAN  DEMOCRACY  3 1 

of,  and  by  which  they  know  we  are  hindered  both  from  that  humble 
way  of  seeking  advice,  and  reaping  those  comfortable  fruits  of  pro- 
tection which,  at  other  times,  we  might  well  expect:  we,  therefore, 
do  conceive  it  our  bounden  duty,  without  delay,  to  enter  into  a 
present  constitution  amongst  ourselves,  for  mutual  help  and  strength 
in  all  our  future  concernments,  that,  as  in  nation,  and  religion,  so, 
in  other  respects,  we  be,  and  continue,  one,  according  to  the  tenor 
and  true  meaning  of  the  ensuing  articles. 

Wherefore  it  is  fully  agreed  and  concluded  by  ahd  between  the  Name  of 
parties,  or  jurisdictions  [of  Massachusetts,   Plymouth,  Connecticut   f^^g^^Jf^j^^ 
and  New  Haven]  that  they  all  be,  and  henceforth  be  called  by  the 
name  of  The  United  Colonies  of  New  England. 

The  said  United  Colonies  for  themselves  and   their  posterities,    "A  firm 
do  jointly  and  severally  hereby  enter  into  a  firm  and  perpetual  league   pg^^^j^'^' 
of  friendship  and  amity,  for  offence  and  defence,  mutual  advice  and   league." 
succour,  upon  all  just  occasions,  both  for  the  preserving  and  propa- 
gating the  truth,  and  hberties  of  the  Gospel,  and  for  their  own  mutual 
safety  and  welfare.  .  .  . 

It  is  also  agreed,  That  for  the  managing  and  concluding  of  all  The  govem- 
affairs  proper  to,  and  concerning  the  whole  Confederation,  two  com-   ^^^j  °  ^^_^ 
missioners  shall  be  chosen  by,   and  out  of  the  four  jurisdictions,   tion. 
namely,  two  for  the  Massachusetts,  two  for  Plymouth,  two  for  Con- 
necticut, and  two  for  New  Haven,   .  .  .  which  shall  bring  full  power 
from  their  several  General  Courts  respectively,  to  hear,  examine,  weigh, 
and  determine  all  affairs  of  war,  or  peace,  leagues,  aids,  charges,  and 
numbers  of  men  for  war,  division  of  spoils,  or  whatsoever  is  gotten 
by  conquest,   receiving  of  more   confederates,   or  plantations  into 
combination  with  any  of  these  confederates,  and  all  things  of  like 
nature  .  .  .  not  intermeddling  with  the  government  of  any  of  the 
jurisdictions,  which  ...  is  preserved  entirely  to  themselves.  .  .  . 

It  is  further  agreed,  That  these  eight  commissioners  shall  meet   Meetings 
once  every  year,  besides  extraordinary  meetings,  ...  to  consider,    °.  ,  ^ 
treat,  and  conclude  of  all  affairs  belonging  to  this  Confederation,  which    commis- 
meeting  shall  ever  be  the  first  Thursday  in  September.  .  .  . 

And    for    that    the    justest    wars  may  be    of    dangerous    conse-   The  con- 
quence,  ...  it  is  agreed,  that  neither  the  Massachusetts,  Plymouth,    {™^^°  ^^^^ 
Connecticut,  nor  New  Haven,  nor  any  of  the  members  of  any  of  them, 


32 


READINGS   IN  AMERICAN   DEMOCRACY 


Violation  of 
the  agree- 
ment. 


shall  at  any  time  hereafter  begin,  undertake,  or  engage  themselves, 
or  this  Confederation,  or  any  part  thereof,  in  any  war  whatsoever  .  .  . 
without  the  consent  and  agreement  of  the  forenamed  eight  com- 
missioners, or  at  least  six  of  them.  .  .  . 

It  is  further  agreed.  That  if  any  of  the  confederates  shall  here- 
after break  any  of  these  present  articles,  or  be  any  other  way  injurious 
to  any  one  of  the  other  jurisdictions,  such  breach  of  agreement  or 
injury,  shall  be  duly  considered,  and  ordered  by  the  commissioners 
for  the  other  jurisdictions,  that  both  peace,  and  this  present  Con- 
federation, may  be  entirely  preserved  without  violation.  .  .  . 


Increased 
need  of  an 
inter- 
colonial 
union. 


Franklin's 
proposal. 


President- 
General  and 
Grand 
CouncU. 


14.   The  union  of  all  of  the  colonies  is  proposed  ^ 

The  New  England  Confederation  rendered  effective  service  against 
the  Indians  for  forty  years,  but  ceased  to  exist  about  1684.  The 
Dutch  were  no  longer  a  jnenace  after  1664,  in  which  year  New  Nether- 
land  became  a  British  possession.  However,  the  danger  of  attack 
from  the  French  and  Indians  increased.  In  1 754  war  between  England 
and  France  was  imminent,  and  the  peace  and  safety  of  all  of  the 
British  possessions  in  America  were  again  threatened.  To  meet 
the  emergency,  Benjamin  Franklin  drew  up  a  plan  of  union,  under 
which  aU  of  the  colonies  were  to  be  governed.  The  following  are 
the  chief  provisions  of  this  plan,  called  the  Albany  plan  of  union, 
because  it  was  adopted  by  a  convention  of  colonial  delegates  at 
Albany  in  1754: 

It  is  proposed  that  humble  appHcation  be  made  for  an  act  of 
Parliament  of  Great  Britain,  by  virtue  of  which  one  general  govern- 
ment may  be  formed  in  America,  including  all  the  said  colonies, 
within  and  under  which  government  each  colony  may  retain  its 
present  constitution,  except  in  the  particulars  wherein  a  change  may 
be  directed  by  the  said  act,  as  hereafter  follows: 

That  the  said  general  government  be  administered  by  a  President- 
General,  to  be  appointed  and  supported  by  the  Crown;  and  a  Grand 
Council,  to  be  chosen  by  the  representatives  of  the  people  of  the 
several  colonies  met  in  their  respective  assemblies. 

That  within  [a  certain  number  of]  months,  after  the  passing  of 
1  From  the  Albany  Plan  of  Union,  1754. 


DEVELOPMENT  OF  AMERICAN  DEMOCRACY  ^^ 

such  act,  the  House  of  Representatives  that  happens  to  be  sitting   Election 
within  that  time,  or  that  shall  be  especially  for  that  purpose  con-   u"*^j^^™f 
vened,  may  and  shall  choose  members  for  the  Grand  Council,  in  the   the  Grand 
following  proportion,  that   is  to  say,  Massachusetts   Bay  7,  New   Council. 
Hampshire  2,  Connecticut  5,  Rhode  Island  2,  New  York  4,  New 
Jersey  3,  Pennsylvania  6,  Maryland  4,  Virginia  7,  North  CaroUna  4, 
and  South  Carohna  4,  i.e.  a  total  of  48. 

[These  representatives]  shall  meet  for  the  first  time  at  the  city   Meetings  of 
of   Philadelphia  in   Pennsylvania,    being   called   by  the   President-    Co^uncir'^ 
General  as  soon  as  conveniently  may  be  after  his  appointment. 

That  there  shall  be  a  new  election  of  the  members  of  the  Grand 
Council  every  three  years;  and,  on  the  death  or  resignation  of  any 
member,  his  place  shall  be  supplied  by  a  new  choice  at  the  next 
sitting  of  the  Assembly  of  the  colony  he  represented.  .  .  . 

That  the  Grand  Council  shall  meet  once  in  every  year,  and  oftener 
if  occasion  require,  at  such  time  and  place  as  they  shall  adjourn  to 
at  the  last  preceding  meeting,  or  as  they  shall  be  called  to  meet  at 
by  the  President- General  on  any  emergency,  he  having  first  obtained 
in  writing  the  consent  of  seven  of  the  members  to  such  caU,  and 
sent  due  and  timely  notice  to  the  whole.  .  .  . 

That  the  assent  of  the  President- General  be  requisite  to  all  acts  Assent  of 
of  the  Grand  Council,  and  that  it  be  his  office  and  duty  to  cause  [^g^^*^^^' 
them  to  be  carried  into  execution.  General. 

That  the  President-General,  with  the  advice  of  the  Grand  Council, 
hold  or  direct  all  Indian  treaties,  in  which  the  general  interest  of 
the  colonies  may  be  concerned;  and  make  peace  or  declare  war  -with 
Indian  nations. 

That  they  make  such  laws  as  they  judge  necessary  for  regulating   Powers  with 
all  Indian  trade.  to^the 

That  they  make  all  purchases,  from  Indians  for  the  Crown,  of   Indians, 
lands  not  now  within  the  bounds  of  particular  colonies,  or  that  shall 
not  be  within  their  bounds  when  some  of  them  are  reduced  to  more 
convenient  dimensions. 

That  they  make  new  settlements  on  such  purchases,  by  granting   Powers  with 
lands  in  the  King's  name,  reserving  a  quitrent  to  the  Crown  for  the   [^^^^^^ 
use  of  the  general  treasury.  settlements. 

That  they  make  laws  for  regulating  and   governing  such  new 


34 


READINGS   IN  AMERICAN  DEMOCRACY 


Taxes. 


Laws  to  be 
transmitted 
to  England. 


settlements,  till  the  Crown  shall  think  fit  to  form  them  into  particular 
governments. 

That  they  raise  and  pay  soldiers  and  build  forts  for  the  defence 
of  the  colonies.  .  .  . 

That  for  these  purposes  they  have  power  to  make  laws,  and  lay  and 
levy  such  general  duties,  imposts  or  taxes,  as  to  them  shaU  appear 
most  equal  and  just.  .  .  . 

That  the  laws  made  for  the  purposes  aforesaid  shall  not  be  re- 
pugnant, but,  as  near  as  may  be,  agreeable  to  the  laws  of  England, 
and  shall  be  transmitted  to  the  King  in  Council  for  approbation, 
as  soon  as  may  be  after,  their  passing;  and  if  not  disapproved  within 
three  years  after  presentation,  to  remain  in  force.  .  .  . 


Effect  of 
the  Revo- 
lution upon 
the  move- 
ment to- 
ward union. 


"The  United 
States  of 
America." 

States' 
rights 
insisted 
upon. 


15.   The  states  enter  a  league  of  friendship  ^ 

The  Albany  Plan  of  Union  was  not  regarded  with  great  favor  by 
the  people  of  the  colonies,  and  was  never  given  serious  consideration 
by  the  EngHsh  government.  But  though  the  project  fell  through, 
it  is  important  as  indicating  the  trend  toward  union.  It  was  not 
many  years  after  the  Albany  convention  that  the  Americans  became 
firmly  convinced  that  separation  from  the  mother  country  was  in- 
evitable. The  outbreak  of  actual  hostilities  between  England  and 
the  colonies  obHged  the  latter  to  provide  some  means  of  marshalUng 
their  joint  forces  against  the  enemy.  As  the  result  of  this  need, 
the  Second  Continental  Congress  in  1777  adopted  a  constitution 
called  the  "Articles  of  Confederation  and  Perpetual  Union  between 
the  States."  These  articles,  of  which  the  most  significant  foUow, 
went  into  actual  operation  on  March  i,  1781: 

.  .  .  The  style  of  this  confederacy  shall  be  "The  United  States 
of  America." 

Each  state  retains  its  sovereignty,  freedom  and  independence, 
and  every  power,  jurisdiction  and  right,  which  is  not  by  this  con- 
federation expressly  delegated  to  the  United  States,  in  Congress 
assembled. 

The  said  states  hereby  severally  enter  into  a  firm  league  of  friend- 
ship with  each  other,  for  their  common  defence,  the  security  of 
'  From  the  Articles  of  Confederation,  1781. 


DEVELOPMENT  OF  AMERICAN  DEMOCRACY  35 

their  liberties,  and  their  mutual  and  general  welfare,  binding  them-   Purpose  of 
selves  to  assist  each  other,  against  all  force  offered  to,  or  attacks   the  Confed- 
made  upon  them,  or  any  of  them,  on  account  of  religion,  sovereignty, 
trade,  or  any  other  pretence  whatever. 

The  better  to  secure  and  perpetuate  mutual  friendship  and  inter-   This  clause 
course  among  the  people  of  the  different  states  in  this  union,  the  free   "^^  "°* 
inhabitants  of  each  of  these  states  (paupers,  vagabonds,  and  fugi-    spected  by 
tives  from  justice  excepted),  shall  be  entitled  to  all  privileges  and  ^^^^^^^^""^^ 
immunities  of  free  citizens  in  the  several  states;    and  the  people  of 
each  state  shall  have  free  ingress  and  regress  to  and  from  any  other 
state,  and  shall  enjoy  therein  all  the  privileges  of  trade  and  commerce, 
subject  to  the  same  duties,  impositions  and  restrictions  as  the  inhab- 
itants thereof  respectively,  provided  that  such  restriction  shall  not 
extend  so  far  as  to  prevent  the  removal  of  property  imported  into 
any  state,  to  any  other  state  of  which  the  owner  is  an  inhabitant; 
provided  also  that  no  imposition,  duties  or  restriction  shall  be  laid 
by  any  state,    on  the  property  of  the  United    States,  or  either  of 
them.  ... 

Full  faith  and  credit  shall  be  given  in  each  of  these  states  to  the  Full  faith 
records,  acts  and  judicial  proceedings  of  the  courts  and  magistrates 
of  every  other  state. 

For  the  more  convenient  management  of  the  general  interest  of   There  being 
the  United  States,  delegates  shall  be  annually  appointed  in  such   g°pcu[|^4^or 
manner  as  the  legislature  of  each  state  shall  direct,  to  meet  in  Congress   judiciary, 
on  the  first  Monday  in  November,  in  every  year,  with  a  power  re-   p^J^^  "^^^ 
served  to  each  state,  to  recaU  its  delegates,  or  any  of  them,  at  any   exercised 
time  within  the  year,  and  to  send  others  in  their  stead,  for  the  re-    QQ^gress. 
mainder   of   the   year. 

No  state  shall  be  represented  in  Congress  by  less  than  two,  nor  by 
more  than  seven  members.  .  .  . 

In  determining  questions  in  the  United  States,  in  Congress  assem- 
bled,   each   state   shall   have   one   vote.  .  .  . 

No  state,  without  the  consent  of  the  United  States  in  Congress   The  treaty- 
assembled,  shall  send  any  embassy  to,  or  receive  any  embassy  from,   ^^^^ 
or  enter  into  any  conference,  agreement,  alliance  or  treaty  with  any 
king,  prince,  or  state.  .  .  . 

No  two  or  more  states  shall  enter  into  any  treaty,  confederation 


36 


READINGS  IN  AMERICAN  DEMOCRACY 


Defense. 


This  clause 
did  not 
give  the 
national 
government 
adequate 
powers  in 
the  raising 
of  money. 


Powers 
granted  to 
the  national 
government. 


or  alliance  whatever  between  them,  without  the  consent  of  the  United 
States  in  Congress  assembled,  specifying  accurately  the  purposes  for 
which  the  same  is  to  be  entered  into,  and  how  long  it  shall  continue. 

No  state  shall  lay  any  imposts  or  duties,  which  may  interfere  with 
any  stipulations  in  treaties,  entered  into  by  the  United  States  in 
Congress  assembled,  with  any  king,  prince,  or  state,  in  pursuance  of 
any  treaties  already  proposed  by  Congress,  to  the  courts  of  France 
and  Spain. 

No  vessels  of  war  shall  be  kept  up  in  time  of  peace  by  any  state, 
except  such  number  only,  as  shall  be  deemed  necessary  by  the  United 
States  in  Congress  assembled,  for  the  defense  of  such  state,  or  its 
trade;  nor  shall  any  body  of  forces  be  kept  up  by  any  state,  in  time 
of  peace,  except  such  number  only,  as  in  the  judgment  of  the  United 
States,  in  Congress  assembled,  shall  be  deemed  requisite,  .  .  .  but 
every  state  shall  always  keep  up  a  well  regulated  and  disciplined 
mihtia.  .  .  . 

No  state  shall  engage  in  any  war  without  the  consent  of  the  United 
States  in  Congress  assembled,  unless  such  state  be  actually  invaded 
by  enemies,  or  shall  have  received  certain  advice  of  a  resolution  being 
formed  by  some  nation  of  Indians  to  invade  such  state,  and  the  danger 
is  so  imminent  as  not  to  admit  of  a  delay,  till  the  United  States  in 
Congress  assembled  can  be  consulted.  .  .  . 

All  charges  of  war,  and  all  other  expenses  that  shall  be  incurred 
for  the  common  defence  or  welfare,  and  allowed  by  the  United  States 
in  Congress  assembled,  shall  be  defrayed  out  of  a  common  treasur>% 
which  shall -be  supplied  by  the  several  states,  in  proportion  to  the 
value  of  all  land  within  each  state.  .  .  . 

The  taxes  for  paying  that  proportion  shall  be  laid  and  levied 
by  the  authority  and  direction  of  the  legislatures  of  the  several 
states.  ... 

The  United  States  in  Congress  assembled  shall  have  the  sole  and 
exclusive  right  to  determine  on  peace  and  war,  except  in  the  cases 
mentioned  [above]. 

[The  United  States  shall  also  have  the  power  to  enter]  into  treaties 
and  aUiances,  provided  that  no  treaty  of  commerce  shall  be  made 
whereby  the  legislative  power  of  the  respective  states  shall  be  re- 
strained from  imposing  such  imposts  and  duties  on  foreigners,  as 


DEVELOPMENT  OF  AMERICAN  DEMOCR.\CY  37 

their  own  people  are  subjected  to,  or* from  prohibiting  the  exporta- 
tion of  any  species  of  goods  whatsoever.  .  .  . 

The  United  States  in  Congress  assembled  shall  also  be  the  last 
resort  on  appeal  in  aU  disputes  and  differences  now  subsisting  or 
that  hereafter  may  arise  between  two  or  more  states  concerning 
boundary,  jurisdiction,  or  any  other  cause  whatever.  .  .  . 

The  United  States  in  Congress  assembled  shall  also  have  the  sole 
and  exclusive  right  and  power  of  regxilating  the  alloy  and  value  of 
coin  struck  by  their  own  authority,  or  by  that  of  the  respective 
states.  .  .  . 

[Further  powers  of  the  United  States  are]  establishing  and  regulat- 
ing post  offices  .  .  .  throughout  the  United  States,  .  .  .  appoint- 
ing aU  officers  of  the  land  forces,  in  the  service  of  the  United  States, 
excepting  regimental  officers;  appointing  aU  the  officers  of  the  naval 
forces,  and  commissioning  aU  officers  whatever  in  the  service  of 
the  United  States,  [as  well  as]  making  rules  for  the  government 
and  regulation  of  the  said  land  and  naval  forces,  and  directing  their 
operations. 

The  United  States  in  Congress  assembled  shaU  have  authority  ... 
to  ascertain  the  necessary  sums  of  money  to  be  raised  for  the  service 
of  the  United  States,  and  to  appropriate  and  apply  the  same  for 
defraying  the  public  expenses;  to  borrow  money,  or  emit  bills  on  the 
credit  of  the  United  States  .  .  .  ;  to  build  and  equip  a  navy;  to  agree 
upon  the  number  of  land  forces,  and  to  make  requisitions  from  each 
state  for  its  quota.  ... 

Every  state  shall  abide  by  the  determinations  of    the    United   The  rela- 
States  in  Congress  assembled,  on  all  questions  which  by  this  confed-   ^^°^  o   t  e 
eration  are  submitted  to  them.    And  the  articles  of  this  confederation   the  national 
shall  be  inviolably  observed  by  every  state,  and    the  union  shall   government. 
be  perpetual. 

Nor  shall  any  alteration  at  any  time  hereafter  be  made  in  any   Amendment. 
of  [the  articles],  unless  such  alteration  be  agreed  to  in  a  Congress  of 
the  United  States,  and  be  afterwards  confirmed  by  the  legislatures 
of  every  state.  .  .  . 


J^al97i 


38 


READINGS  IN  AMERICAN   DEMOCRACY 


Weakness 
of  the 
Confed- 
eration 
government. 


Importance 
of  the  pe- 
riod follow- 
ing the 
Revolution- 
ary war. 


Four  things 
which  are 
essential  to 
the  well- 
being  of 
the  nation. 


16.   Washington  outlines  the  needs  of  the  country  ^ 

The  Confederation  government  functioned  feebly  during  the  last 
two  years  of  the  Revolutionary  War,  and  then  declined  rapidly  in 
power  and  influence.  Very  soon  after  the  cessation  of  actual  hostiU- 
ties  it  was  clear  to  many  far-sighted  American  statesmen  that  the 
Articles  of  Confederation  could  not  carry  the  young  nation  through 
the  period  of  adjustment  following  the  war.  No  one  saw  this  more 
clearly  than  Washington.  On  the  8th  of  June,  1783,  he  issued  his 
famous  "  Circular  letter  addressed  to  the  Governors  of  aU  the  states 
on  disbanding  the  army,"  in  which  he  directed  attention  to  the  needs 
of  the  nation.     Some  extracts  from  this  letter  follow: 

.  .  .  This  is  the  time  of  .  .  .  [the]  political  probation  [of  the 
United  States];  this  is  the  moment  when  the  eyes  of  the  whole  world 
are  turned  upon  them;  this  is  the  moment  to  estabhsh  or  ruin  their 
national  character  forever;  this  is  the  favorable  moment  to  give 
such  a  tone  to  our  Federal  government,  as  will  enable  it  to  answer 
the  ends  of  its  institution,  or  this  may  be  the  ill-fated  moment  for 
relaxing  the  powers  of  the  Union,  annihilating  the  cement  of  the 
confederation,  and  exposing  us  to  become  the  sport  of  European 
poUtics.  .  .  . 

For,  according  to  the  system  of  poUcy  the  states  shall  adopt  at 
this  moment,  they  will  stand  or  faU;  and  by  their  confirmation  or 
lapse  it  is  yet  to  be  decided,  whether  the  revolution  must  ultimately 
be  considered  as  a  blessing  or  a  curse.  .  .  . 

With  this  conviction  of  the  importance  of  the  present  crisis,  silence 
in  me  would  be  a  crime.  .  .  . 

There  are  four  things,  which,  I  humbly  conceive,  are  essential  to 
the  well-being,  I  may  even  venture  to  say,  to  the  existence  of  the 
United  States,  as  an  independent  power. 

First,  An  indissoluble  union  of  the  states  under  one  Federal  head. 

Second,  A  sacred  regard  to  public  justice. 

Third,   The   adoption  of   a  proper  peace  establishment;    and 

Fourth,  The  prevalence  of  that  pacific  and  friendly  disposition 
among  the  people  of  the  United  States,  which  will  induce  them  to 

I  From  George  Washington,  Circular  letter  addressed  to  the  Governors  of  all  the 
states  on  disbanding  the  army,  1783. 


DEVELOPMENT  OF  AMERICAN  DEMOCRACY  39 

forget  their  local  prejudices  and  policies;  to  make  those  mutual 
concessions,  which  are  requisite  to  the  general  prosperity;  and,  in 
some  instances,  to  sacrifice  their  individual  advantages  to  the  interest 
of  the  community.   .   .   . 

On  the  three  first  articles  I  will  make  a  few  observations,  leaving 
the  last  to  the  good  sense  and  serious  consideration  of  those  immedi- 
ately concerned. 

Under  the  first  head  ...  it  will  be  a  part  of  my  duty,  and  that  A  predictioa 
of  every  true  patriot,  to  assert  without  reserve,  and  to  insist  upon, 
the  following  positions.  That,  unless  the  states  will  suffer  Congress 
to  exercise  those  prerogatives  they  are  undoubtedly  invested  with 
by  the  constitution,  everything  must  very  rapidly  tend  to  anarchy 
and  confusion. 

That  it  is  indispensable  to  the  happiness  of  the  individual  states, 
that  there  should  be  lodged  somewhere  a  supreme  power  to  regulate 
and  govern  the  general  concerns  of  the  confederated  repubUc,  without 
which  the  Union  cannot  be  of  long  duration.  .  .  . 

17.   Hamilton  summarizes  the  defects  of  the  Confederation  ^ 

Washington's  belief  that  the  Articles  of  Confederation  were  seriously  Hamilton 
defective  was  shared  by  a  number  of  other  American  statesmen.    Of   ^^^^^  ^^^ 
these  none  was  more  conscious  of  the  need  of  a  strong  national  govern-   a  strong 
ment  than  Alexander  Hamilton.    This  briUiant  young  lawyer,  later 
the  first  Secretary  of  the  Treasury,  summarized  the  defects  of  the 
Confederation  government  in  the  following  terms: 

Firstly,  and  generally,  [the  Articles  are  defective]  in  confining  the   Federal 
power  of  the  Federal  government  within  too  narrow  Umits;  withhold-   government 
ing  from  it  that  efficacious  authority  and  influence,  in  all  matters   stricted. 
of  general  concern,  which  are  indispensable  to  the  harmony  and 
welfare  of  the  whole.  .  .  . 

Secondly:    In   confounding   legislative   and   executive   powers  in   Legislative 
a  single  body:   as,  that  of  determining  on  the  number  and  quantity   ^J^"^  "^owers 
of  force,  land  and  naval,  to  be  employed  for  the  common  defence,   confounded. 
and  of  directing  their  operations  when  raised  and  equipped,  with 

1  From  Alexander  Hamilton,  Works.  (Adapted  slightly,  in  order  to  simplify  the 
style.  —  Editor.) 


national 
government. 


40 


READINGS  IN  AMERICAN  DEMOCRACY 


Lack  of  a 

Federal 

judiciary. 


Inadequate 
powers  with 
respect  to 
taxation. 


National 
credit  not 
assured. 


Powers  of 

defense 

inadequate. 


that  of  ascertaining  and  making  requisitions  for  the  necessary  sums 
or  quantities  of  money  to  be  paid  by  the  respective  states  into  the 
common  treasury.  [This  is]  contrary  to  the  most  approved  and 
well-founded  maxims  of  free  government,  which  require  that  the 
legislative,  executive,  and  judicial  authorities  should  be  deposited 
in  distinct  and  separate  hands. 

Thirdly:  [The  lack]  of  a  Federal  judiciary,  having  cognizance  of 
all  matters  of  general  concern  in  the  last  resort,  especially  those 
matters  in  which  foreign  nations  and  their  subjects  are  interested. 
[Because  of  this  lack]  the  local  regulations  of  particular  states 
mihtate  directly  or  indirectly  against  the  powers  vested  in  the  Union, 
[so  that]  the  national  treaties  will  be  liable  to  be  infringed,  the 
national  faith  to  be  violated,  and  the  public  tranquilhty  to  be 
disturbed. 

Fourthly:  [The  Articles  vest  the  United  States  in  Congress  as- 
sembled  with  the  power  of  general  taxation,  but  render  this  essential 
power  null  and  void]  by  withholding  from  the  United  States  all 
control  over  both  the  imposition  or  the  collection  of  taxes.  .  .  . 
Whence  it  happens  that  the  inclinations,  not  the  abilities,  of  the 
respective  states  are,  in  fact,  the  criterion  of  their  contributions  to 
the  common  expense;  and  the  public  burden  has  fallen,  and  will 
continue  to  fall,  with  very  unequal  weight. 

Fifthly:  [The  Articles  are  defective]  in  fixing  a  rule  for  determin- 
ing the  proportion  of  each  state  toward  the  common  expense,  which 
if  practicable  at  all,  must,  in  the  execution,  be  attended  with  great 
expense,  inequaUty,  uncertainty  and  difficulty. 

Sixthly:  [The  Articles  are  defective]  in  authorizing  Congress 
"to  borrow  money,  or  emit  bills  on  the  credit  of  the  United  States," 
without  the  power  of  estabhshing  funds  to  secure  the  repayment  of 
the  money  borrovyed,  or  the  redemption  of  the  bills  emitted.  From 
which  must  result  one  of  these  evils:  either  a  want  of  sufficient 
credit,  in  the  first  instance,  to  borrow,  or  to  circulate  the  bills 
emitted,  ...  or,  in  the  second  instance,  [the  inability  of  the  gov- 
ernment to  keep  its  engagements.]  .  .  . 

Seventhly:  [The  Articles  are  defective]  in  not  making  proper  or 
competent  provisions  for  interior  defense,  since  the  control  of  the 
land  forces  is  so  largely  left  to   the  individual  states   that  there 


DEVELOPMENT  OF  AMERICAN  DEMOCRACY  41 

results  great  confusion  in  the  military  department.  .  .  .  Also  in 
not  making  proper  or  competent  provisions,  for  external  defense, 
since  the  xA.rticles  authorize  Congress  to  "build  and  equip  a  navy" 
without  providing  any  means  of  manning  it  [except  by]  voluntary 
enlistment,  a  resource  which  has  been  found  ineffectual  in  every 
country,  and,  for  reasons  of  peculiar  force,  in  this. 

Eighthly:  [The  Articles  are  defective]  in  not  vesting  in  the  United   Congress 
States   a   general   superintendence   of   trade,    equally   necessary   in   °^snt  to 
view  of  revenue  and  regulation.     [Revenue  duties]  cannot,  without   power  to 
great  disadvantages,  be  imposed  by  particular  states  while  others   ^^sulate 
refrain  from  doing  it,  but  must  be  imposed  in  concert,  .  .  .  other- 
wise those  states  which  should  not  impose  them  would  engross  the 
commerce  of  such  of  their  neighbors  as  did.    The  regulation  of  trade 
by  the  United  States  government,  rather  than  by  the  states  indi- 
vidually, is  necessary  in  order  to  prevent  individual  states  from  inter- 
fering with  commercial  treaties  which  the  United  States  has  made 
'Adth  foreign  nations.  .  .  . 

Ninthly:  [The  Articles  are  defective]  in  defeating  essential  powers  Inconsist- 

by  provisions   and   Hmitations   which   are   inconsistent   with   their   ^^^  m  the 
■'     ^  grant  of 

nature.  .  .  .  For  example,  Congress  is  given  the  power  "of  regulating   essential 

the  trade  and  managing  all  affairs  with  the  Indians,  not  members   P^'^^rs. 

of  any  of  the  states,  provided  that  the  legislative  right  of  any  state, 

within  its  own  limits,  be  not  infringed  or  violated."  .  .  . 

Tenthly:    [The  x\rticles  are  defective]   in   granting  the  United   Regulation 

States  the  sole  power  "of  regulating  the  aUoy  and  value  of  coin 

00.;  currency. 

Struck  by  their  own  authority  or  by  that  of  the  respective  states," 

without  the  power  of  regulating  the  foreign  coin  in  circulation,  though 

the  one  [power]  is  essential  to  the  due  exercise  of  the  other.  .  .  . 

Eleventhly:    [The  Articles  are  defective]  in  requiring  the  assent    Power  of 

of    nine  states  to  matters  of   principal   importance,  and  of   seven   ^  ?    .    ' 

r-  f  t^  mmonty 

to  all  Others,  except  adjournments  from  day  to  day.  [This  rule  is]   too  great, 
destructive  of  vigor,  consistency,  or  expedition  in  the  administration 
of  affairs.    It  tends  to  subject  the  sense  of  the  majority  to  that  of 
the  minority  by  allowing  a  small  combination  to  retard,  and  even 
to  frustrate,  the  most  necessary  measures.  .   .  . 

Twelfthly:    [The  Articles  are  defective]  in  investing  the  Federal 
government  with  the  sole  direction  of   the   interests  of  the  United 


42 


READINGS  IN  AMERICAN  DEMOCRACY 


Inadequate 
control  of 
foreign 
afiairs. 


States  in  their  intercourse  with  foreign  nations,  without  empower^ 
ing  it  to  pass  all  general  laws  in  aid  and  support  of  the  laws  of  na- 
tions. .  .  .  [Because  of  the  lack  of  this  authority],  the  faith  of  the 
United  States  may  be  broken,  their  reputation  sullied,  and  their 
peace  interrupted  by  the  neghgence  or  misconception  of  any  par- 
ticular state.  .  .  . 


The  Consti- 
tutional 
Convention 
of  1787. 


Franklin's 
speech  to 
the 
delegates. 


He  agrees 
to  the 
Constitu- 
tion. 


18.    Franklin  calls  for  the  ratification  of  the  Constitution 

At  length  the  agitation  in  favor  of  a  stronger  union  bore  fruit,  and 
in  1787  delegates  from  every  state  except  Rhode  Island  gathered 
in  Philadelphia  "to  devise  such  further  provisions  as  shall  appear 
to  them  necessary  to  render  the  Constitution  of  the  Federal  gov- 
ernment adequate  to  the  exigencies  of  the  Union."  The  convention 
sat  in  secret  session  from  May  to  September,  with  Washington  in 
the  chair  as  moderator.  After  extended  debates  and  numerous 
compromises  our  present  Constitution  was  formulated  and  drawn  up. 
When  the  engrossed  Constitution  had  been  read,  the  delegates  to  the 
convention  listened  to  this  speech  by  Benjamin  Franldin: 

Mr.  President:  I  confess  that  there  are  several  parts  of  this  Con- 
stitution which  I  do  not  at  present  approve,  but  I  am  not  sure  that 
I  shall  never  approve  them.  For,  having  hved  long,  I  have  experi- 
enced many  instances  of  being  obliged  by  better  information,  or 
fuller  consideration,  to  change  opinions,  even  on  important  subjects, 
which  I  once  thought  right  but  found  to  be  otherwise. 

It  is  therefore  that,  the  older  I  grow,  the  more  apt  I  am  to  doubt 
my  own  judgment,  and  to  pay  more  respect  to  the  judgment  of  others. 
Most  men,  indeed,  as  well  as  most  sects  in  religion,  think  them- 
selves in  possession  of  all  truth,  and  that  wherever  others  differ 
from  them,  it  is  so  far  error.  .  .  . 

In  these  sentiments,  sir,  I  agree  to  this  Constitution,  with  all  its 
faults,  if  they  are  such;  because  I  think  a  general  government  nec- 
essary for  us,  and  there  is  no  form  of  government,  but  what  may  be 
a  blessing  to  the  people  if  well  administered;  and  believe  further 
that  this  is  likely  to  be  well  administered  for  a  course  of  years,  and 

1  From  Jonathan  Elliot,  Debates  on  the  adoption  of  the  Federal  Constitution,  etc 
Philadelphia,  1881.     Vol.  v,  pp.  554-555- 


DEVELOPMENT  OF  AMERICAN  DEMOCRACY  43 

can  only  end  in  despotism,  as  other  forms  have  done  before  it,  when 
the  people  shall  become  so  corrupted  as  to  need  despotic  govern- 
ment, being  incapable  of  any  other. 

I  doubt,  too,  whether  any  other  convention  we  can  obtain  may  be   Can  a  per- 

able  to  make  a  better  constitution.    For  when  you  assemble  a  number    !!;  ^?^' , 

•'  _        _  stitution  be 

of  men  to  have  the  advantage  of  their  joint  wisdom,  you  inevitably  expected? 
assemble  with  those  men  all  their  prejudices,  their  passions,  their 
errors  of  opinion,  their  local  interests  and  their  selfish  views.  From 
such  an  assembly  can  a  perfect  production  be  expected?  It  therefore 
astonishes  me,  sir,  to  find  this  system  approaching  so  near  to  per- 
fection as  it  does;  and  I  think  it  will  astonish  our  enemies,  who  are 
waiting  with  confidence  to  hear  that  our  councils  are  confounded,  .  .  . 
and  that  our  states  are  on  the  point  of  separation,  only  to  meet  here- 
after for  the  purpose  of  cutting  one  another's  throats. 
Thus  I  consent,  sir,  to  this  Constitution,  because  I  expect  no  better,   He  pleads^ 

and  because  I  am  not  sure  that  it  is  not  the  best.    The  opinions  I         ^  ^^    , 

^  support  of 

have  had  of  its  errors  I  sacrifice  to  the  pubHc  good.  ...  If  every  one  the  Con- 

of  us,  in  returning  to  our  constituents,  were  to  report  the  objections   stitution, 

he  has  had  to  it,  and  endeavor  to  gain  partisans  in  support  of  them, 

we  might  prevent  its  being  generally  received.  ...  I  hope,  therefore, 

that  for  our  own  sakes  as  a  part  of  the  people,  and  for  the  sake  of 

posterity,  we  shall  act  heartily  and  unanimously  in  recommending 

this  Constitution  .  .  .  wherever  our  influence  may  extend,  and  turn 

our  future  thoughts  and  endeavors  to  the  means  of  having  it  well 

administered. 

On  the  whole,  sir,  I  cannot  help  expressing  a  wish  that  every  mem-  and  asks 

ber  of  the  convention  who  may  still  have  objections  to  it,  would  with    ^^f*  ^^^ 

•^  delegates 

me,  on  this  occasion,  doubt  a  Httle  of  his  own  infallibility,  and,  to   sign  it. 
make  manifest  our  unanimity,  put  his  name  to  this  instrument. 


Questions  on  the  foregoing  Readings 

1.  What  is  meant  by  the  statement  that  political  development  in 

early  America  proceeded  along  two  lines  at  the  same  time? 

2.  In  what  year  did  the  first  definite  confederation  of    the  colonies 

occur? 

3.  What  was  the  purpose  of  this  confederation? 


44  READINGS  IN  AMERICAN  DEMOCRACY 

4.  How  was  this  confederation  to  be  governed? 

5.  Who  drew  up  the  plan  of  union  considered  by  the  Albany  Congress 

of    1754? 

6.  What  was  the  nature  of  the  Grand  Council  proposed  by  this  plan? 

7.  What  provision  was  made  for  the  meetings  of  this  Council? 

8.  Outline  the  powers  of  the  President-General  and  the  Grand  Council 

with  respect  to  Indian  relations. 

9.  What  provision  did  the  Albany  plan  make  for  the  levying  of  taxes? 

10.  What  did  the  Albany  plan  say  about  the  transmission  of  laws  to 

England? 

11.  Why  did  the  states  enter  a  "  firm  league  of  friendship  "  in  1781? 

12.  What   did    the    Articles   of    Confederation   say   concerning   state 

sovereignty? 

13.  What  was  the  nature  of  the  Congress  created  by  the  Articles? 

14.  What  were  some  of  the  powers  expressly   granted  the  national 

government? 

15.  What  provision  was  made  for  the  amendment  of  the  Articles? 

16.  What  was   Washington's  opinion  of  the   position  of  the   United 

States  immediately  following  the  Rev^olution? 

17.  What  four  things  did  he  hold  essential  to  the  well-being  of  the 

nation? 

18.  What  was  Hamilton's  first  objection  to  the  Articles  of  Confed- 

eration? 

19.  What  did  he  say  concerning  the  failure  of  the  Articles  to  provide 

for  a  Federal  Judiciary? 

20.  In  what   way   were   the  powers  of   the   Confederation    Congress 

defective  with  respect  to  taxation? 

21.  What  did  Hamilton  say  concerning  the  undue  power  of  the  mi- 

nority under  the  Articles  of  Confederation? 

22.  What  was  the  defect  of  the  Articles  with  respect  to  foreign  affairs? 

23.  For  what  purpose   was   the   Constitutional   Convention  of   1787 

convened? 

24.  Why  did  Franklin  accept  the  new  Constitution? 

25.  Why  did  he  ask  that  all  of  the   members  of  the  Constitutional 

Convention  recommend  the  Constitution  wherever  their  influ- 
ence extended? 


CHAPTER    IV 

ESSENTIALS    OF  AMERICAN    CONSTITUTIONAL 
GOVERNMENT 

19.   Individual  rights  under  the  Federal  Constitution  ^ 

Having  been  ratified  by  the  requisite  number  of  states,  the  Federal   The  objec- 
Constitution  was  set  to  work  on  April  30,  1789,  with  George  Wash-   thTconsti- 
ington  as  first  President  of  the  United  States.    The  Constitution  as   tution  did 
submitted  to  the  people  in  1787  contained  several  specific  guarantees   qu^tdy'pro. 
of  personal  liberty,  but  many  people  objected  that  these  did  not   tect  in- 
adequately  protect  the  rights  of  the  individual  against  governmental    ^jgj^^^^ 
oppression.     In  some  states  members  of   the  legislature  voted  for 
the  new  Constitution  with  the  understanding  that  additional  guaran- 
tees of  personal  liberty  would  at  once  be  appended  to  the  Constitution. 
This  was  done  in  1791,  when  a  number  of  amendments  were  adopted 
in  a  body.    At  the  present  time  the  following  are  the  chief  guarantees 
of  personal  rights  which  are  contained  in  the  Federal  Constitution 
and  the  amendments  thereto: 

Art.  IV.  Sect.  II.   The  citizens  of  each  state  shall  be  entitled  to   Privileges 
all  privileges  and  immunities  of  citizens  in  the  several  states.  .  .  .   n^tieg"™^"' 

Art.  I.  Sect.  IX.  .  .  .  The  privilege  of  the  writ  of  habeas  corpus   Habeas 
shall  not  be  suspended,  unless  when  in  cases  of  rebeUion  or  invasion   corpus,  etc. 
the  public  safety  may  require  it. 

No  bill  of  attainder  or  ex  post  facto  law  shall  be  passed.  .  .  . 

Amendment  I.     Congress  shall  make  no  law  respecting  an  estab-   Freedom  of 
lishment  of  rehgion,  or  prohibiting  the  free  exercise  thereof;  or  abridg-   g^gpj^'^'and 
ing  the  freedom  of  speech,  or  of  the  press;  or  the  right  of  the  people    the  press, 
peaceably  to  assemble,  and  to  petition  the  government  for  a  re- 
dress of  grievances. 

Amendment  II.    A  well  regulatpd  miUtia,  being  necessary  to  the    Right  to 
security  of  a  free  state,  the  right  of  the  people  to  keep  and  bear   ^^^P  ^^ 
arms,  shall  not  be  infringed. 

1  From  the  Constitution  of  the  United  States. 
45 


46 


READINGS  IN  AMERICAN  DEMOCRACY 


The  quar- 
tering of 
soldiers. 

The  regula- 
tion of 
search  and 
seizure. 


The  pro- 
tection of 
hfe,  liberty, 
and  prop- 
erty. 


Protection 
in  criminal 
prose- 
cutions. 


Suits  at 
common 
law. 


Bail  and 

punish- 
ments. 

Rights  re- 
tained by 
the  people. 


Amendment  III.  No  soldier  shall,  in  time  of  peace  be  quartered 
in  any  house,  without  the  consent  of  the  owner,  nor  in  time  of  war, 
but  in  a  manner  to  be  prescribed  by  law. 

Amendment  IV.  The  right  of  the  people  to  be  secure  in  their 
persons,  houses,  papers,  and  effects,  against  unreasonable  searches 
and  seizures,  shall  not  be  violated,  and  no  warrants  shall  issue,  but 
upon  probable  cause,  supported  by  oath  or  affirmation,  and  par- 
ticularly describing  the  place  to  be  searched,  and  the  persons  or 
things  to  be  seized. 

Amendment  V.  No  person  shall  be  held  to  answer  for  a  capital, 
or  otherwise  infamous  crime,  unless  on  a  presentment  or  indictment 
of  a  grand  jury,  except  in  cases  arising  in  the  land  or  naval  forces, 
or  in  the  miUtia,  when  in  actual  service  in  time  of  war  or  pubUc 
danger;  nor  shall  any  person  be  subject  for  the  same  offense  to  be 
twice  put  in  jeopardy  of  hfe  or  limb;  nor  shall  be  compelled  in  any 
criminal  case  to  be  a  witness  against  himself,  nor  be  deprived  of 
Ufe,  hberty,  or  property,  without  due  process  of  law;  nor  shall  private 
property  be  taken  for  public  use  without  just  compensation. 

Amendment  VI.  In  all  criminal  prosecutions  the  accused  shall 
enjoy  the  right  to  a  speedy  and  pubhc  trial,  by  an  impartial  jury  of 
the  state  and  district  wherein  the  crime  shall  have  been  committed, 
which  district  shall  have  been  previously  ascertained  by  law,  and 
to  be  informed  of  the  nature  and  cause  of  the  accusation;  to  be  con- 
fronted with  the  witnesses  against  him;  to  have  compulsory  process 
for  obtaining  witnesses  in  his  favor,  and  to  have  the  assistance  of 
counsel  for  his  defense. 

Amendment  VII.  In  suits  at  common  law,  where  the  value  in  con- 
troversy shall  exceed  twenty  dollars,  the  right  of  trial  by  jury  shall 
be  preserved,  and  no  fact  tried  by  a  jury  shall  be  otherwise  reexamined 
in  any  court  of  the  United  States,  than  according  to  the  rules  of  the 
common  law. 

Amendment  VIII.  Excessive  bail  shall  not  be  required,  nor  ex- 
cessive fines  imposed,  nor  cruel  and  unusual  punishments  inflicted. 

Amendment  IX.  The  enumeration  in  the  Constitution,  of  certain 
rights,  shall  not  be  construed  to  deny  or  disparage  others  retained 
by  the  people. 


AMERICAN  CONSTITUTIONAL  GOVERNMENT  47 

20.   States'  rights  under  the  Federal  Constitution  ^ 

Some  of  the  bitterest  and  most  protracted  debates  in  the  Con-   States' 
stitutional  Convention  of  1787  hinged  upon  the  status  of  the  states   goyj.^j,e  ^f^ 
in  the  proposed  union.     ReaUzing  that  a  chief  weakness  of  the  old   extended 
Confederation  government  had  been  the  inadequacy  of  the  powers   jhe'consti- 
granted  to  the  Congress,  many  delegates  insisted  that  the  powers   tutional 
of  the  national  government  be  markedly  increased.    Fearing  that   o°^^gy^'°^ 
a  marked  increase  in  the  powers  of  the  national  government  would 
endanger  the  position  of  the  individual  states,  other  delegates  in- 
sisted that   the  constitution  under  debate  allow  the  states  to  re- 
tain most  essential  powers.    The  result  was  a  compromise:   a  strong 
national   government   was   created,   but    states'   rights  were   safe- 
guarded.   The  following  are  the  chief  constitutional  provisions  which 
safeguard   states'   rights,  either   by  imposing  limitations  upon  the 
Federal  government,  or  by  the  Federal  guarantee  of  certain  rights 
to  the  states,  or  by  the  Federal  regulation  of  interstate  relations: 

Art.  I.  Sect.  IX.  .  .  .  No  capitation  or  other  direct  tax  shall  be   Powers 
laid,  vmless  in  proportion  to  the  census  or  enumeration  hereinbefore   .^'"t  j*'  1 
directed   to   be   taken.^  government. 

No  tax  or  duty  shall  be  laid  on  articles  exported  from  any  state. 

No  preference  shall  be  given  by  any-  regulation  of  commerce  or 
revenue  to  the  ports  of  one  state  over  those  of  another;  nor  shall 
vessels  bound  to  or  from  one  state  be  obUged  to  enter,  clear,  or  pay 
duties  in  another. 

No  money  shah  be  drawn  from  the  treasury  but  in  consequence  of 
appropriations  made  by  law;  and  a  regular  statement  and  account 
of  the  receipts  and  expenditures  of  all  public  money  shall  be  pubHshed 
from  time  to  time.  .  .  . 

Art.  IV.  Sect.  I.    Full  faith  and  credit  shall  be  given  in  each  state  interstate 
to  the  pubhc  acts,  records,  and  judicial  proceedings  of  every  other   reaUon;,. 
state.    And  the  Congress  may  by  general  laws  prescribe  the  manner 
in  which  such  acts,  records,  and  proceedings  shall  be  proved,  and  the 
effect  thereof. 

*  From  the  Constitution  of  the  United  States. 

2  The  Sixteenth  .\mendment  exempts  the  Federal  income  tax  from  the  operation 
of  this  provision. 


48 


READINGS  IN  AMERICAN  DEMOCRACY 


Federal 
guarantees 
to  the 
states. 


Residual 
powers  of 
the  states. 


Art.  IV.  Sect.  V.  The  citizens  of  each  state  shall  be  entitled  to 
all  privileges  and  immunities  of  citizens  in  the  several  states. 

A  person  charged  in  any  state  with  treason,  felony,  or  other  crime, 
who  shall  flee  from  justice,  and  be  found  in  another  state,  shall  on 
demand  of  the  executive  authority  of  the  state  from  which  he  fled, 
be  deUvered  up  to  be  removed  to  the  state  having  jurisdiction  of 
the   crime. 

No  person  held  to  service  or  labor  in  one  state,  under  the  laws 
thereof,  escaping  into  another,  shall,  in  consequence  of  any  law  or 
regulation  therein,  be  discharged  from  such  service  or  labor,  but 
shaU  be  delivered  up  on  claim  of  the  party  to  whom  such  service  or 
labor  may  be  due. 

Art.  IV.  Sect.  IV.  The  United  States  shall  guarantee  to  every 
state  in  this  Union  a  republican  form  of  government,  and  shall 
protect  each  of  them  against  invasion,  and  on  application  of  the 
legislature,  or  of  the  executive  (when  the  legislature  cannot  be 
convened),  against  domestic  violence. 

Amendment  X.  The  powers  not  delegated  to  the  United  States 
by  the  Constitution,  nor  prohibited  by  it  to  the  states,  are  reserved 
to  the  states  respectively,  or  to  the  people. 


The  Consti- 
tution like- 
wise in- 
sures a 
strong 
Federal 
government. 


Powers 
denied  to 
the  states. 


21.   The  powers  of  the  Federal  government  ^ 

But  though  the  Federal  Constitution  contains  numerous  provisions 
designed  to  safeguard  the  rights  of  the  states,  that  document  also 
provides  for  a  strong  national  government.  Two  types  of  constitu- 
tional provisions  operate  to  give  the  Federal  government  adequate 
powers:  first,  those  provisions  which  Umit  the  action  of  the  states 
in  behalf  of  the  national  government ;  and  second,  those  provisions 
which  grant  express  powers  to  the  Federal  authorities.  The  follow- 
ing are  the  constitutional  clauses  which  constitute  these  bases  of 
Federal  authority: 

Art.  I.  Sect.  X.     No  state  shall  enter  into  any  treaty,  alliance, 

or  confederation;   grant  letters  of  marque  and  reprisal;   coin  money; 

emit  bills  of  credit;  make  anything  but  gold  and  silver  coin  a  tender 

in  payment  of  debts;  pass  any  bill  of  attainder,  ex  post  facto  law, 

1  From  the  Constitution  oj  the  United  States. 


AMERICAN   CONSTITUTIONAL  GOVERNMENT  49 

or  law  impairing  the  obligation  of  contracts,  or  grant  any  title  of 

nobility. 

No  state  shall,,  without  the  consent  of  Congress,  lay  any  imposts 
or  duties  on  imports  or  exports,  except  what  may  be  absolutely  neces- 
sary for  executing  its  inspection  laws:  and  the  net  produce  of  ail 
duties  and  imposts  laid  by  any  state  on  imports  or  exports,  shall 
be  for  the  use  of  the  treasury  of  the  United  States;  and  all 
such  laws  shall  be  subject  to  the  revision  and  control  of  the 
Congress. 

No  state  shall,  without  the  consent  of  Congress,  lay  any  duty  of 
tonnage,  keep  troops,  or  ships  of  war  in  time  of  peace,  enter  into  any 
agreement  or  compact  with  another  state,  or  with  a  foreign  power, 
or  engage  in  war,  unless  actually  invaded,  or  in  such  imminent  danger 
as  will  not  admit  of  delay. 

Art.  I.  Sect.  VIII.    The  Congress  shall  have  power  to  lay  and  col-   Powers 
lect  taxes,  duties,  imposts  and  excises,  to  pay  the  debts  and  provide   '^'^^^^^gg**^ 
for  the  common  defense  and  general  welfare  of  the  United  States; 
but    all   duties,  imposts  and  excises  shall  be  uniform  throughout 
the  United  States; 

To  borrow  money  on  the  credit  of  the  United  States; 

To  regulate  commerce  with  foreign  nations,  and  among  the  several 
states,  and  with  the  Indian  tribes; 

To  establish  an  uniform  rule  of  naturalization,  and  uniform  laws 
on  the  subject  of  bankruptcies   throughout   the  United   States; 

To  coin  money,  regulate  the  value  thereof,  and  of  foreign  coin, 
and  fix  the  standard  of  weights  and  measures; 

To  provide  for  the  punishment  of  counterfeiting  the  securities 
and  current  coin  of   the  United  States; 

To  establish  post   offices  and  post  roads; 

To  promote  the  progress  of  science  and  useful  arts,  by  securing 
for  Umited  times  to  authors  and  inventors  the  exclusive  right  to 
their  respective  writings  and  discoveries; 

To  constitute  tribunals  inferior  to  the  Supreme  Court; 

To  define  and  punish  piracies  and  felonies  committed  on  the  high 
seas,  and  offenses  against  the  law  of  nations; 

To  declare  war,  grant  letters  of  marque  and  reprisal,  and  make 
rules  concerning  captures  on  land  and  water;  . 


50 


READINGS  IN  AMERICAN  DEMOCRACY 


Powers 
of  the 
President. 


To  raise  and  support  armies,  but  no  appropriation  of  money  to 
that  use  shall  be  for  a  longer  term  than  two  years; 

To  provide  and  maintain  a  navy; 

To  make  rules  for  the  government  and  regulation  of  the  land  and 
naval  forces; 

To  provide  for  caUing  forth  the  militia  to  execute  the  laws  of  the 
Union,  suppress  insurrections  and  repel  invasions; 

To  provide  for  organizing,  arming,  and  disciplining  the  militia, 
and  for  governing  such  part  of  them  as  may  be  employed  in  the  service 
of  the  United  States,  reserving  to  the  states  respectively  the  appoint- 
ment of  the  officers,  and  the  authority  of  training  the  miUtia  according 
to  the  discipline  prescr  bed  by  Congress; 

To  exercise  exclusive  legislation  in  all  cases  whatsoever,  over  such 
district  (not  exceeding  ten  miles  square)  as  may,  by  cession  of  par- 
ticular states,  and  the  acceptance  of  Congress,  become  the  seat  of 
the  government  of  the  United  States,  and  to  exercise  Uke  authority 
over  all  places  purchased  by  the  consent  of  the  legislature  of  the 
state  in  which  the  same  shall  be,  for  the  erection  of  forts,  magazines, 
arsenals,  dockyards,  and  other  needful  buildings;   and 

To  make  all  laws  which  shall  be  necessary  and  proper  for  carrying 
into  execution  the  foregoing  powers,  and  all  other  powers  vested  by 
this  Constitution  in  the  government  of  the  United  States,  or  in  any 
department  or  officer  thereof. 

Ari.  II.  Sect.  II.  The  President  shall  be  commander  in  chief  of 
the  army  and  navy  of  the  United  States,  and  of  the  militia  of  the 
several  states,  when  called  into  the  actual  service  of  the  United  States; 
he  may  require  the  opinion,  in  writing,  of  the  principal  officer  in  each 
of  the  executive  departments,  upon  any  subject  relating  to  the  duties 
of  their  respective  offices,  and  he  shall  have  power  to  grant  reprieves 
and  pardons  for  offenses  against  the  United  States,  except  in  cases 
of  impeachment. 

He  shall  have  power,  by  and  with  the  advice  and  consent  of  the 
Senate,  to  make  treaties,  provided  two  thirds  of  the  senators  present 
concur;  and  he  shall  nominate,  and  by  and  with  the  advice  and 
consent  of  the  Senate,  shall  appoint  ambassadors,  other  public 
ministers  and  consuls,  judges  of  the  Supreme  Court,  and  all  other 
officers  of  the  United  States,  whose  appointments  are  not  herein 


AMERICAN  CONSTITUTIONAL   GOVERNMENT  5 1 

otherwise  provided  for,  and  which  shall  be  established  by  law:  but 
the  Congress  may  by  law  vest  the  appointment  of  such  inferior 
officers,  as  they  think  proper,  in  the  President  alone,  in  the  courts 
of  law,  or  in  the  heads  of  departments. 

The  President  shall  have  power  to  fill  up  all  vacancies  that  may 
happen  during  the  recess  of  the  Senate,  by  granting  commissions 
which  shall  expire  at  the  end  of  their  next  session. 

Art.  IV.  Sect.  III.    New  states  may  be  admitted  by  the  Congress   Power  over 
mto  this  Union;   but  no  new  state  shall  be  formed  or  erected  within   ^^^  ^^^^^ 
the  jurisdiction  of  any  other  state;   nor  any  state  be  formed  by  the   tories. 
junction    of   two  or    more  states,  or  parts  of   states,  without   the 
consent  of  the  legislatures  of    the  states  concerned  as  well  as  of 
the  Congress. 

The  Congress  shall  have  power  to  dispose  of  and  make  all  needful 
rules  and  regulations  respecting  the  territory  or  other  property 
belonging  to  the  United  States;  and  nothing  in  this  Constitution 
shall  be  so  construed  as  to  prejudice  any  claims  of  the  United  States, 
or  of  any  particular  state. 

Amendment  XVI.     The  Congress  shall  have  power  to  lay  and   Power  with 
collect  taxes  on  incomes,  from  whatever  source  derived,  without    ^^  ^^ 
apportionment  among   the  several  states,  and  without  regard   to   income  tax. 
any  census  or  enumeration. 


22.   The  extent  of  Federal  powers  ^ 

Students  of  American  government  have  generally  divided  into    Strict 
two  groups  over  the  question  of  Federal  powers.     One  group  has   \^^^'^^^ 
contended  that  since  the  Federal  government  is  one  of  enumerated   strucdon  of 
powers,  the  Federal  government  may  exercise  no  power  not  expressly 
granted  by  the  Constitution.    This  view  has  been  called  the  "strict 
construction"  of  the  Constitution.    The  second  group  has  contended 
that  the  Federal  government  possesses  not  only  the  powers  expressly 
granted  in  the  Constitution,  but  also  those  which  are  included  within, 
or  necessarily  imphed  from,  powers  expressly  granted.    The  Supreme 
Court  has  incUned  toward  this  liberal  interpretation  of  the  Constitu- 


versus 

con- 
>n  oi 
the  Consti- 
tution. 


1  From  the  United  States  Supreme  Court   decision  in  the  case  of  M'Cullock 
vs.  the  State  oj  Maryland,  1819. 


52 


READINGS   IN  AMERICAN  DEMOCRACY 


Vital  im- 
portance of 
the  issue. 


The  Federal 
government 
should  be 
allowed  to 
select  the 
means  nec- 
essary to 
carry  into 
effect 
powers 
granted  to 
it  by  the 
Constitution. 


Maryland 
contends 
for  a 
dangerous 
principle. 


Limits  of 
the  power 
of  the 
states 
to  tax. 


tion.  In  1819,  for  example,  the  Court  upheld  the  liberal  construc- 
tion of  the  Constitution  in  the  celebrated  case  of  M'Culloch  vs.  the 
State  of  Maryland.  The  following  are  some  extracts  from  the  de- 
cision in  this  case: 

...  In  the  case  now  to  be  determined,  the  defendant,  a  sov- 
ereign state,  denies  the  obHgation  of  a  law  enacted  by  the  legislature 
of  the  Union;  and  the  plaintiff,  on  his  part,  contests  the  validity 
of  an  act  which  has  been  pas  ed  by  the  legislature  of  that  state. 
The  Constitution  of  our  country,  in  its  most  interesting  and  vital 
parts,  is  to  be  considered;  the  conflicting  powers  of  the  government 
of  the  Union  and  its  members,  as  marked  in  that  Constitution,  are 
to  be  discussed;  and  an  opinion  given,  which  may  essentially 
influence  the  great  operations  of  the  government.  .  .  . 

We  admit,  as  all  must  admit,  that  the  powers  of  the  government 
are  limited,  and  that  its  Umits  are  not  to  be  transcended.  But  we 
think  the  sound  construction  of  the  Constitution  must  allow  to  the 
national  legislature  that  discretion,  with  respect  to  the  means  by 
which  the  powers  it  confers  are  to  be  carried  into  execution,  which 
will  enable  that  body  to  perform  the  high  duties  assigned  to  it,  in 
the  manner  most  beneficial  to  the  people.  Let  the  end  be  legitimate, 
let  it  be  within  the  scope  of  the  Constitution,  and  aU  means  which 
are  appropriate,  which  are  plainly  adapted  to  that  end,  which  are 
not  prohibited,  but  consist  with  the  letter  and  spirit  of  the  Consti- 
tution,  are  constitutional.  .  .  . 

If  we  apply  the  principle  for  which  the  state  of  Maryland  contends, 
to  the  Constitution  generally,  we  shall  find  it  capable  of  changing 
totally  the  character  of  that  instrument.  We  shaU  find  it  capable 
of  arresting  all  the  measures  of  the  government,  and  of  prostrating 
it  at  the  foot  of  the  states.  The  American  people  have  declared 
their  Constitution,  and  the  laws  made  in  pursuance  thereof,  to  be 
supreme;  but  this  principle  w^ould  transfer  the  supremacy,  in  fact, 
to  the  states. 

If  the  states  may  tax  one  instrument,  employed  by  the  govern- 
ment in  the  execution  of  its  powers,  they  may  tax  any  and  every 
instrument.  They  may  tax  the  mail;  they  may  tax  the  mint;  they 
may  tax  patent  rights;  they  may  tax  the  papers  of  the  custom- 
house; they  may  tax  judicial  process;   they  may  tax  all  the  means 


AMERICAN  CONSTITUTIONAL  GOVERNMENT  53 

employed  by  the  government,  to  an  excess  which  would  defeat  all  the 

ends  of  government.  This  was  not  intended  by  the  American  people. 

They  did  not  design  to  make  their  government  dependent  on  the 

states.  .  ,  . 

The  court  has  bestowed  on  this  subject  its  most  dehberate  consid-   The 

eration.    The  result  is  a  conviction  that  the  states  have  no  power,    unanimous 

decision  01 

by  taxation  or  otherwise,  to  retard,  impede,  burden,  or  in  any  manner   the  court, 
control,  the  operations  of  the  constitutional  laws  enacted  by  Con- 
gress to  carry  into  execution  the  powers  vested  in  the  general  gov- 
ernment.    This  is,  we  think,  the  unavoidable  consequence  of  that 
supremacy  which  the  Constitution  has  declared. 

We  are  unanimously  of  opinion,  that  the  law  passed  by  the  legis- 
lature of  Maryland,  imposing  a  tax  on  the  Bank  of  the  United  States, 
is  unconstitutional  and  void.  .  .  . 


23.   The  check  and  balance  system  ^ 

But  despite  the  supremacy  of  Federal  law,  it  is  not  possible  for   The  check 
the  National  government  to  become  despotic.     As  we  have  seen,    ^^'r  °^'?"'^^ 

■^  "^  '     system  in 

certain  rights  of  both  individuals  and  states  are  specifically  safe-    the  Federal 
guarded  by  the  Constitution  itself.     In  addition,  the  powers  of  the   go^'ernment. 
Federal  government  are  so  divided  among  the  legislative,  executive, 
and  judicial  departments  that  each  of  these  constitutes  a  check  upon 
the  other  two.     The  nature  of  this  check  and  balance  system  was 
early  described  by  James  Madison,  writing  in  the  Federalist.    When 
the  Federal  Constitution  came  before  the  people  of  New  York  for 
ratification  or  rejection,  some  of  the  citizens  of  that  state  objected 
that  the  new  Constitution  did  not  adequately  provide  for  the  separa- 
tion of  the  legislative,  executive,  and  judicial  departments  in  the 
Federal  government,  so  that,  as  the  Constitution  stood,  some  one 
department  might  acquire  an  undue  amount  of  power.     Madison    Madison 
answered  this  objection   in   the  Federalist  in   January,    1788,   and   ^-.^^^^.j^^ 
attempted  to  show  that  this  objection  was  not  valid.    Early  in  Feb-   tution. 
ruary,  1788,  he  continues  his  discussion  of  the  check  and  balance 
system  in  the  following  language: 

1  From  the  Federalisl,  Numbers  48  (47)  and  51  (50). 


54 


READINGS  IN  AMERICAN  DEMOCRACY 


The  prob- 
lem of 
guarding 
each  depart- 
ment 
against 
invasion 
by  the 
others. 


The 
solution. 


Separation 
of  appoint- 
ing powers. 


Financial 
independ- 
ence. 


...  It  is  agreed,  on  all  sides,  that  the  powers  properly  belong- 
ing to  one  of  the  departments  [of  the  Federal  government]  ought 
not  to  be  directly  and  completely  administered  by  either  of  the 
other  departments.  It  is  equally  evident  that  none  of  them  ought 
to  possess,  directly  or  indirectly,  an  over-ruHng  influence  over  the 
others,  in  the  administration  of  their  respective  powers.  It  will  not 
be  denied  that  power  is  of  an  encroaching  nature,  and  that  it  ought 
to  be  effectually  restramed  from  passing  the  hmits  assigned  to  it. 
After  discriminating,  therefore,  in  theory,  the  several  classes  of 
power,  as  they  may  in  their  nature  be  legislative,  executive  or  judicial, 
the  next  and  most  difficult  task  is  to  provide  some  practical  security 
for  each  against  the  invasion  of  the  others.  .  .  . 

To  what  expedient,  then,  shall  we  finally  resort,  for  maintaining 
in  practice  the  necessary  partition  of  power  among  the  several  de- 
partments, as  laid  down  in  the  Constitution?  The  only  answer  that 
can  be  given  is  that  .  .  .  the  defect  must  be  supplied,  by  so  con- 
triving the  interior  structure  of  the  government,  as  that  its  several 
constituent  parts  may  ...  be  the  means  of  keeping  each  other  in 
their  proper  places.  Without  presuming  to  undertake  a  full  develop- 
ment of  this  important  idea,  I  will  hazard  a  few  general  observations, 
which  may  perhaps  place  it  in  a  clearer  light,  and  enable  us  to  form 
a  more  correct  judgment  of  the  principles  and  structure  of  the  gov- 
ernment  planned   by   the   [Constitutional]   Convention. 

In  order  to  lay  a  due  foundation  for  that  separate  and  distinct 
exercise  of  the  different  powers  of  government,  which  to  a  certain 
extent  is  admitted  on  all  hands  to  be  essential  to  the  preservation 
of  liberty,  it  is  evident  that  each  department  should  have  a  will 
of  its  own,  and  consequently  should  be  so  constituted  that  the  mem- 
bers of  each  should  have  as  little  agency  as  possible  in  the  appoint- 
ment of  the  members  of  the  others.  .  .  . 

It  is  equally  evident  that  the  members  of  each  department  should 
be  as  little  dependent  as  possible  on  those  of  the  others  for  the  emolu- 
ments annexed  to  their  offices.  Were  the  executive  magistrate, 
or  the  judges,  not  independent  of  the  legislature  in  this  particular, 
their  independence  in  every  other  would  be  merely  nominal. 

But  the  great  security  against  a  gradual  concentration  of  the 
several  powers  in  the  same  department  consists  in  giving  to  those 


AMERICAN  CONSTITUTION.\L  GOVERNMENT  55 

who  administer  each  department  the  necessary  constitutional  means 
and  personal  motives  to  resist  encroachments  of  the  others.  .  .  . 

It  may  be  a  reflection  on  human  nature  that  such  devices  should   WTiy  checks 
be  necessary  to  control  the  abuses  of  government.     But  what  is   ^"'^  ^^'' 
government  itself,  but  the  greatest  of  all  reflections  on  human  nature?   necessary. 
If  men  were  angels,  no  government  would.be  necessary.     If  angels 
were  to  govern  men,  neither  external  nor  internal  controls  on  govern- 
ment would  be  necessary.  ~  In  framing  a  government  which  is  to  be 
administered  by  men  over  men,  the  great  difficulty  lies  in  this:  you 
must  first  enable  the  government  to  control  the  governed;    and  in 
the  next  place  oblige  it  to  control  itself.  .  .  . 

This  poHcy  of  supplying,   by  opposite   and   rival  interests,   the   Universal 
defect  of  better  motives,  might  be  traced  through  the  whole  sys-  i^^ture 
tem  of  human  affairs,  private  as  weU  as  public.    We  see  it  particiflarly  principle, 
displayed  in  all  the  subordinate  distributions  of  power,  where  the 
constant  aim  is  to  divide  and  arrange  the  several  offices  in  such  a 
manner  as  that  each  may  be  a  check  on  the  other  —  that  the  private 
interest  of  every  individual  may  be  a  sentinel  over  the  pubUc  rights. 
These  inventions  of  prudence  cannot  be  less  requisite  in  the  distri- 
bution of  the  supreme  powers  of  the  State.  ...  , 

In  a  single  repubhc,  all  the  power  surrendered  by  the  people  is  The 
submitted  to  the  administration  of  a  single  government;    and  the   ^|^^^^  °^ 
usurpations  are  guarded  against  by  a  division  of   the  government   doubly 
into  distinct  and  separate  departments.     In  the  compound  republic   s^'^^^- 
of  America,  the  power  surrendered  by  the  people  is  first  divided  be- 
tween two  distinct  governments  [the  state  and  Federal  governments], 
and  then  the  portion  allotted  to  each  is  subdivided  among  distinct 
and  separate  departments.     Hence  a  double  security  arises  to  the 
rights  of  the  people.     The  different  governmpnts  will  control  each 
other,  at  the  same  time  that  each  will  be  controlled  by  itself.  .  .  . 


24.   Significance  of  the  judiciary  in  American  government  ^ 

Section  I  of  Article  in  of  the  Constitution  vests  the  judicial  power 
of  the   United  States  in  one  Supreme  Court  and  in  such  inferior 

1  From  the  United  States  Supreme  Court  decision  in  the  case  of  Marhury  vs. 
Madison,  1803. 


56 


READINGS  IN  AMERICAN  DEMOCRACY 


Power  of 
the  Su- 
preme 
Court  to 
pass  upon 
the  consti- 
tutionaUty 
of  Federal 
statutes. 


Right  of 
the  people 
to  establish 
their 
government. 


The  Consti- 
tution is 
either 
paramount 
or  it  is  not. 


courts  as  Congress  may  from  time  to  time  ordain  and  establish, 
while  Section  ii  of  Article  ill  defines  the  jurisdiction  of  the  Federal 
courts.  Nowhere  does  the  Federal  Constitution  expressly  confer 
upon  the  Supreme  Court  of  the  United  States  the  power  of  declar- 
ing statutes  invaUd  on  the  ground  that  they  are  contrary  to  the 
Constitution,  nevertheless  our  Supreme  Court  exercises  this  power. 
Indeed,  one  of  the  distinctive  features  of  American  government 
is  the  right  of  this  tribunal  to  act  as  the  final  and  authoritative  in- 
terpreter of  the  Constitution.  This  right  was  first  asserted  by  Chief 
Justice  Marshall  in  1803  in  the  case  of  Marhury  vs.  Madison.  The 
following  is  an  extract  from  the  decision  in  this  case: 

.  .  .  That  the  people  have  an  original  right  to  estabhsh,  for  their 
future  government,  such  principles  as,  in  their  opinion,  shall  most 
conduce  to  their  own  happiness,  is  the  basis  on  which  the  whole 
American  fabric  has  been  erected.  .  .  .  The  principles,  therefore, 
so  established  are  deemed  fundamental.  And  as  the  authority  from 
which  they  proceed  is  supreme,  and  can  seldom  act,  they  are  designed 
to  be  permanent.  This  original  and  supreme  will  organizes  the 
government,  and  assigns  to  different  departments  their  respective 
powers.  It  may  either  stop  here,  or  establish  certain  limits  not  to 
be  transcended  by  those  depar  ments. 

The  government  of  the  Un"ted  States  is  of  the  latter  description. 
The  powers  of  the  legislature  are  defined  and  limited;  and  that  those 
limits  may  not  be  mistaken,  or  forgotten,  the  Constitution  is 
written.  .  .  . 

The  distinction  between  a  government  with  limited  and  unhmited 
powers  is  aboUshed,  if  those  limits  do  not  confine  the  persons  on 
whom  they  are  imposed,  and  if  acts  prohibited  and  acts  allowed 
are  of  equal  obligation.  It  is  a  proposition  too  plain  to  be  contested, 
that  the  Constitution  controls  any  legislative  Act  repugnant  to  it; 
or  that  the  legislature  may  alter  the  Constitution  by  an  ordinary  Act. 

Between  these  alternatives  there  is  no  middle  ground.  The  Con- 
stitution is  either  a  superior  paramount  law,  unchangeable  by  or- 
dinary means,  or  it  is  on  a  level  with  ordinary  legislative  Acts,  and^ 
Hke  other  Acts,  is  alterable  when  the  legislature  shall  please  to  alter 
it.  If  the  former  part  of  the  alternative  be  true,  then  a  legislative 
Act  contrary  to  the  Constitution  is  not  law;    if  the  latter  part  be 


AMERICAN  CONSTITUTIONAL   GOVERNMENT  57 

true,  then  written  constitutions  are  absurd  attempts,  on  the  part 

of  the  people,  to  limit  a  power  in  its  own  nature  ilUmitable. 

Certainly  all  those  who  have  framed  written  constitutions  con-   A  written 

template  them   as   forming   the   fundamental   and   paramount   law   constitution 

^  '^  IS  funda- 

of  the  nation,  and,  consequently,  the  theory  of  every  such  govern-   mental. 

ment  must  be,  that  an  Act  of  the  legislature,  repugnant  to  the  Con- 
stitution, is  void.  .  .  . 

It  is  emphatically  the  province  and  duty  of  the  judicial  depart-   The  duty 
ment  to  say  what  the  law  is.    Those  who  apply  the  rule  to  particular   °^,  ^^^  ^"^"^ 

'  .  .  when  a  law 

cases,  must  of  necessity  expound  and  interpret  that  rule.     If  two   is  in  opposi- 

laws  conflict  with  each  other,  the  courts  must  decide  on  the  opera-   ^'°"  ^?  ^^^ 

Consti- 
tion  of  each.     So  if  a  law  be  in  opposition  to  the  Constitution;    if   tution. 

both  the  law  and  the  Constitution  apply  to  a  particular  case,  so  that 
the  court  must  decide  that  case  conformably  to  the  law,  disregard- 
ing the  Constitution,  or  conformably  to  the  Constitution,  disre- 
garding the  law,  the  court  must  determine  which  of  these  conflicting 
rules  governs  the  case.  This  is  of  the  very  essence  of  judicial  duty. 
If,  then,  the  courts  are  to  regard  the  Constitution,  and  the  Con- 
stitution is  superior  to  any  ordinary  Act  of  the  legislature,  the  Con- 
stitution, and  not  such  ordinary  Act,  must  govern  the  case  to  which 
they  both  apply.  .  .  . 
It  is  apparent,  [from  illustrations  contained  in  the  full  decision   Since 

of  the  easel,  that  the  framers  of  the  Constitution  contemplated  that   Judges  take 
-'  an  oath  to 

instrument  as  a  rule  for  the  government  of  the  courts,  as  well  as   support  the 

of  the  legislature.    Why  otherwise  does  it  direct  the  judges  to  take   ^o^istitu- 

an  oath  to  support  it?  .  .  .  How  immoral  to  impose  it  on  them,    conduct 

if  they  were  to  be  used  as  the  instruments,  and  the  knowing  instru-   ^^^^     ,  , 

^  governed  by 

ments,  for  violating  what  they  swear  to  support !    The  oath  of  ofifice,    that 
too,  imposed  by  the  legislature,  is  completely  demonstrative  of  the   document, 
legislative  opinion  on  this  subject. 

It  is  in  these  words:  "I  do  solemnly  swear  that  I  will  administer  The  oath, 
justice  without  respect  to  persons,  and  do  equal  right  to  the  poor 
and  to  the  rich;  and  that  I  will  faithfully  and  impartially  discharge 
all  the  duties  incumbent  on  me  as  .  .  .  according  to  the  best  of 
my  abilities  and  understanding,  agreeably  to  the  Constitution  and 
laws  of  the  United  States."  Why  does  a  judge  swear  to  discharge 
his  duties  agreeable  to  the  Constitution  of  the  United  States,  if  that 


58  READINGS   IN  AMERICAN   DEMOCRACY 

Constitution  forms  no  rules  for  his  government  —  if  it  is  closed  upon 
him,  and  cannot  be  inspected  by  him?  If  such  be  the  real  state  of 
things,  this  is  worse  than  solemn  mockery.  To  prescribe,  or  to 
take  this  oath,  becomes  equally  a  crime.  .  .  . 


Questions  on  the  foregoing  Readings 

1.  What  was  an  important  obstacle  to  the  ratification  of  the  Con- 

stitution? 

2.  How  was  this  objection  met? 

3.  What    are    the    guarantees    of    personal    liberty    contained    in 

Section  ix  of  Article  i  of  the  Constitution? 

4.  Outline  the  guarantees  of  personal  liberty  contained  in  the  first 

nine  amendments  to  the  Constitution. 

5.  What  controversy  took   place   in   the   Constitutional   Convention 

of  1787  over  states'  rights? 

6.  How  was  the  dispute  settled? 

7.  Outline  the  powers  denied  to  the  United  States  by   the  Federal 

Constitution. 

8.  What  does   the   Federal    Constitution  say   concerning    interstate 

relations? 

9.  What    guarantee    to    the    states    is   contained    in    Section    rv   of 

Article  rv  of  the  Constitution? 

10.  What  two  types  of  provisions  in  the  Constitution  were  designed 

to  strengthen  the  position  of  the  National  government? 

11.  What  powers  are  denied  to  the  states  by  the  Constitution? 

12.  Enumerate   the   chief   powers   of   Congress    as   laid    down   in   the 

Constitution. 

13.  What  are  the  constitutional  powers  of  the  President  of  the  United 

States? 

14.  What  power  does  the  Federal  government  exercise  with  respect 

to  new  states  and  territories? 

15.  Distinguish  between  the  strict  and  the  liberal  interpretations  of 

the  Federal  Constitution. 

16.  What  is  the  importance  of  the  decision  in  the  case  of  M'Culloch 

vs.  the  State  of  Maryland? 

17.  What  was  the  issue  in  this  case? 

18.  What  was  the  decision  of  the  court  in  this  case? 

19.  What  part  did  James    Madison  play  in  the  contest  over  the  rati- 

fication of  the  Constitution? 

20.  What,  according  to   Madison,  was  the  difficulty  of  protecting  the 

three  Federal  departments  against  one  another? 


AMERICAN  CONSTITUTIONAL  GOVERNMENT  59 

21.  What  was  his  proposed  solution  of  this  problem? 

22.  Why  are  checks  and  balances  necessary  in  government? 

23.  How,  according  to  Madison,  does  American  constitutional  govern- 

ment render  the  rights  of  the  people  doubly  secure? 

24.  What  is  the  significance  of  the  decision  of  the  Supreme  Court  in 

the  case  of  Marbury  vs.  Madison? 

25.  Outline  the  decision  of  the  court  in  this  case. 


CHAPTER   V 


THE   PROBLEMS    OF   AMERICAN   DEMOCRACY 


New  prob- 
lems arise 
to  confront 
the  young 
American 
nation. 


Washington 
believes  it 
his  duty  to 
make  cer- 
tain recom- 
mendations 
to  the 
American 
people. 


25.   Washington's  charge  to  the  nation  ^ 

When,  on  April  30,  1789,  the  Federal  Constitution  was  put  into 
operation  with  George  Washington  as  first  President,  the  United 
States  of  America  took  on  a  new  lease  of  life.  But  though  the  trials 
of  the  "critical  period"  gradually  dechned  and  finally  disappeared, 
other  problems  confronted  the  young  nation.  These  were  the  prob- 
lems of  a  newly  created  state,  projected  suddenly  into  the  family 
of  nations,  and  obliged,  because  of  this  new  position,  to  grapple 
with  numerous  foreign  as  well  as  purely  domestic  issues.  No  one 
comprehended  more  clearly  than  George  Washington  the  content 
and  significance  of  these  problems,  and  no  one  more  earnestly  urged 
their  solution.  At  the  conclusion  of  his  second  term  of  office,  Washing- 
ton addressed  a  solemn  farewell  to  the  American  people,  notifying 
them  of  his  decision  not  to  accept  a  third  term,  and  protesting  his 
devotion  to  the  nation.  The  following  are  extracts  from  the  remainder 
of  his  Farewell  Address: 

.  .  .  Here,  perhaps,  I  ought  to  stop.  But  a  solicitude  for  your 
welfare,  which  cannot  end  but  with  my  Hfe,  and  the  apprehension 
of  danger,  natural  to  that  sohcitude,  urge  me,  on  an  occasion  like 
the  present,  to  offer  to  j^our  solemn  contemplation,  and  to  recommend 
to  your  frequent  review,  some  sentiments,  which  are  the  result  of 
much  reflection.  .  .  .  These  will  be  offered  to  you  with  the  more 
freedom,  as  you  can  only  see  m  them  the  disinterested  warnings  of 
a  parting  friend,  who  can  possibly  have  no  personal  motive  to  bias 
his  counsel.  .  .  . 

The  unity  of  government,  which  constitutes  you  one  people,  is 

also  now  dear  to  you.     It  is  justly  so,  for  it  is  a  main  pillar  in  the 

1  From  George  Washington,  Farewell  Address. 
60 


THE  PROBLEMS  OF  AMERICAN  DEMOCRACY  6l 

edifice  of  your  real  independence;  the  support  of  your  tranquillity 
at  home;  your  peace  abroad;  of  your  safety;  of  your  prosperity 
in  every  shape     of  that  liberty  which  you  so  highly  prize.  .  .  . 

Toward  the  preservation  of  your  government,  and  the  permanency   He  warns 
of  your  present  happy  state,  it  is  requisite,  not  only  that  you  steadily   ;'S^'°st 
discountenance  irregular  oppositions  to  its  acknowledged  authority, 
but  also  that  you  resist  with  care  the  spirit  of  innovation  upon  its 
principles,   however  specious  the  pretexts.  ... 

Let  me  now  .  .  .  warn  you  in  the  most  solemn  manner  against  and  party 
the  baneful  effects  of  the  spirit  of  party,  generally.  .  .  .  The  al-  ^P'"^ 
ternate  domination  of  one  faction  over  another,  sharpened  by  the 
spirit  of  revenge  natural  to  party  dissension  ...  is  itself  a  frightful 
despotism.  But  this  leads  at  length  to  a  more  formal  and  perma- 
nent despotism.  The  disorders  and  miseries,  which  result,  gradually 
incHne  the  minds  of  men  to  seek  security  and  repose  in  the  absolute 
power  of  an  individual;  and  sooner  or  later  the  chief  of  some  pre- 
vailing faction  .  .  .  turns  this  disposition  to  the  purposes  of  his 
own  elevation,  on  the  ruins  of  pubhc  liberty.  .  .  . 

The  necessity  of  reciprocal    checks  in   the  exercise  of  political   The  check 

pow'er  .  .  .  has   been   evinced   by   experiments   ancient   and   mod-   ^"  ^  balance 
^  •'         ^  ^       ^  system. 

em.  ...  To  preserve  them  must  be  as  necessary  as  to  institute 
them.  .  .  . 

Promote  ...  as  an  object  of  primarj'  importance,   institutions    Public 
for  the  general  diffusion  of  knowledge.     In  proportion  as  the  struc-   °P"^^o^- 
ture  of  a  government  gives  force  to  public  opinion,  it  is  essential 
that  public  opinion  should  be  enlightened. 

As  a  very  important  source  of  strength  and  security,  cherish  public 
credit.  ... 

Observe  good  faith  and  justice  toward  all  nations.     Cultivate  He  warns 
peace  and  harmony  with  all.  .  .  .  [But]  against  the  insidious  wiles   ^^^'.'^^'^ 
of  foreign  influence  .  .  .  the  jealousy  of  a  free  people  ought  to  be   influences 
constantly  awake,  since  history  and  experience  prove  that  foreign 
influence  is  one  of  the  baneful  foes  of  repubUcan  government.  .  .  . 
Europe  has  a  set  of  primary  interests,  which  to  us  have  none,  or 
a  very  remote  relation.     Hence  she  must  be  engaged  in  frequent 
controversies,  the  causes  of  which  are  essentially  foreign  to  our  con- 
cerns.    Hence,  therefore,  it  must  be  unwise  in  us  to  implicate  our- 


62 


READINGS  IN  AMERICAN   DEMOCRACY 


selves,  by  artificial  ties,  in  the  ordinary  vicissitudes  of  her  politics, 
or  the  ordinary  combinations  and  coUisions  of  her  friendships  or 
enmities.  .  .  . 


The  two 

great 

problems 

facing 

Jackson 

in  1833: 


The  preser- 
vation of 
states' 
rights  and 
the  integ- 
rity of  the 
Union. 

Duty  of 
obeying 
the  laws. 


The  double 
duty  which 
rests  upon 
thePresident. 


26.    Jackson  on  the  aims  of  government  ^ 

The  issues  of  American  political  life  changed  markedly  in  charac- 
ter and  content  in  the  four  decades  which  followed  the  Farewell  Ad- 
dress of  Washington.  Nevertheless,  when  on  March  4,  1833,  Andrew 
Jackson  began  his  second  term  as  President  of  the  United  States, 
he  beheved  that  the  two  greatest  problems  facing  him  were  those 
with  which  Washington  had  been  famihar:  First,  the  preservation 
of  the  rights  of  the  several  states,  and  second,  the  preservation  of 
the  integrity  of  the  Union.  In  his  second  inaugural  address,  Jackson 
referred  to  these  problems  in  the  following  language: 

...  In  the  domestic  policy  of  this  Government  there  are  two 
objects  which  especially  deserve  the  attention  of  the  people  and 
their  representatives,  and  which  have  been  and  will  continue  to 
be  the  subjects  of  my  increasing  solicitude.  They  are  the  preserva- 
tion of  the  rights  of  the  several  states  and  the  integrity  of  the  Union. 

These  great  objects  are  necessarily  connected,  and  can  only  be 
attained  by  an  enhghtened  exercise  of  the  powers  of  each  within  its 
appropriate  sphere  in  conformity  with  the  public  will  constitutionally 
expressed.  To  this  end  it  becomes  the  duty  of  all  to  yield  a  ready 
and  patriotic  submission  to  the  laws  constitutionally  enacted,  and 
thereby  promote  and  strengthen  a  proper  confidence  in  those  insti- 
tutions of  the  several  states  and  of  the  United  States  which  the  people 
themselves  have  ordained  for  their  own  government. 

My  experience  in  public  concerns  and  the  observation  of  a  life 
somewhat  advanced  confirm  the  opinions  long  since  imbibed  by 
me,  that  the  destruction  of  our  state  governments  or  the  annihilation 
of  their  control  over  the  local  concerns  of  the  people  would  lead 
directly  to  revolution  and  anarchy,  and  finally  to  despotism  and 
miUtary  domination.  .  .  . 

Solemnly  impressed  with  these  considerations,  my  countrymen 
will  ever  find  me  ready  to  exercise  my  constitutional  powers  in 
arresting  measures  which  may  directly  or  indirectly  encroach  upon 
'  From  Andrew  Jackson,  Second  Inaugural  Address,  March  4,  1833. 


THE   PROBLEMS  OF  AMERICAN  DEMOCRACY  63 

the  rights  of  the  states  or  tend  to  consoHdate  all  political  power  in 
the  General  Government. 

But  of  equal,  and,  indeed,  of  incalculable,  importance  is  the  union 
of  these  states,  and  the  sacred  duty  of  all  to  contribute  to  its  pres- 
ervation by  a  liberal  support  of  the  general  goverrunent  in  the  exer- 
cise of  its  just  powers.  .  .  .  Without  union  our  independence  and 
liberty  would  never  have  been  achieved;  without  union  they  never 
can  be  maintained.  .  .  .  The  loss  of  liberty,  of  all  good  govern- 
ment, of  peace,  plenty,  and  happiness,  must  inevitably  follow  a 
dissolution   of   the   Union.  ... 

The  time  at  which  I  stand  before  you  is  full  of  interest.     The  He  pleads 
eyes  of  all  nations  are  fixed  on  our  RepubHc.    The  event  of  the  exist-   ^°''  ^^^^^^' 
ing  crisis  will  be  decisive  in  the  opinion  of  the  practicability  of  our   of  the 
federal  system  of  government.     Great  is  the  stake  placed  in  our   P^ople- 
hands;    great  is  the  responsibility  which  must  rest  upon  the  people 
of  the  United  States.    Let  us  realize  the  importance  of  the  attitude 
in  which  we  stand  before  the  world.    Let  us  exercise  forbearance  and 
firmness.     Let  us  extricate  our  country  from  the  dangers  which 
surround  it  and  learn  wi.idom  from  the  lessons  they  inculcate.  .  .  . 


27.   Lincoln  on  the  spirit  of  lawlessness  ^ 

While  Andrew  Jackson  was  still  serving  his  second  term  as  Presi-   Lincoln 
dent  of  the  United  States,  a  young  man  in  Springfield,  Illinois,  was   ^^^"'^'^g  jj 
aiding  in  the  organization  of  a  "Young  Men's  Lyceum  for  Mutual   Lyceum. 
Improvement."     This  was  Abraham  Lincoln.     In  1837,  when  only 
twenty-eight  years  of  age,  Lincoln  addressed  this  lyceum  on  the 
subject  of  the  perpetuation  of  our  political  institutions.    The  follow- 
ing  are   extracts   from   this   speech: 

In  the  great  journal  of  things  happening  under  the  sun,  we,  the   Favored 
American  people,  find  our  account  running  under  date  of  the  nine-   Position 
teenth  century  of  the  Christian  era.    We  find  ourselves  in  the  peace-   American 
ful  possession  of  the  fairest  portion  of  the  earth  as  regards  extent   Ps^'P'^- 
of  territory,  fertihty  of  soil,  and  salubrity  of  climate.    We  find  our- 
selves under  the  government  of  a  system  of  political  institutions 
conducing  more  essentially  to  the  ends  of  civil  and  religious  liberty 
than  any  of  which  the  history  of  former  times  tells  us. 

1  From  the  Sangamon  (Illinois)  Journal,  February  3,  1838. 


64 


READINGS  IN  AMERICAN  DEMOCRACY 


The  duty  of 
the  present 
generation 
contrasted 
with  the 
duty  of  the 
early 
American 
patriots. 


Danger  of 
lawlessness. 


The  remedy 
for  law- 
lessness. 


We,  when  mounting  the  stage  of  existence,  found  ourselves  the 
legal  inheritors  of  these  fundamental  blessings.  We  toiled  not  in 
the  acquisition  or  establishment  of  them;  they  are  a  legacy  be- 
queathed to  us  by  a  once  hardy,  brave  and  patriotic,  but  now  lamented 
and  departed,  race  of  ancestors.  Theirs  was  the  task  (and  nobly 
they  performed  it)  to  possess  themselves  of  this  goodly  land,  and  to 
uprear  upon  its  hills  and  in  its  valleys  a  political  edifice  of  Uberty 
and  equal  rights;  'tis  ours  only  to  transmit  these  —  the  former 
unprofaned  by  the  foot  of  an  invader,  the  latter  undecayed  by  the 
lapse  of  time  and  untorn  by  usurpation  —  to  the  latest  generation 
that  fate  shall  permit  the  world  to  know.  This  task  of  gratitude 
to  our  fathers,  justice  to  ourselves,  duty  to  posterity,  and  love  for 
our  species  in  general,  imperatively  require  us  faithfully  to  perform. 

How,  then,  shall  we  perform  it?  At  what  point  shall  we  expect 
the  approach  of  danger?  ... 

I  answer,  If  it  ever  reach  us  it  must  spring  up  amongst  us;  it  can- 
not come  from  abroad.  If  destruction  be  our  lot  we  must  ourselves 
be  its  author.  As  a  nation  of  freemen  we  must  hve  through  all  time, 
or  die  by  suicide.  I  hope  I  am  over  wary;  but  if  I  am  not,  there  is 
even  now  something  of  ill  omen  amongst  us.  I  mean  the  increasing 
disregard  for  law  which  pervades  the  country 

Here,  then,  is  one  point  at  which  danger  may  be  expected. 

The  question  recurs,  "How  shall  we  fortify  against  it?"  The 
answer  is  simple.  Let  every  American,  every  lover  of  liberty,  every 
well  wisher  to  his  posterity  swear  by  the  blood  of  the  Revolution 
never  to  violate  in  the  least  particular  the  laws  of  the  country,  and 
never  to  tolerate  their  violation  by  others.  .  .  .  Let  reverence  for 
the  laws  be  breathed  by  every  American  mother  to  the  hsping  babe 
that  prattles  on  her  lap;  let  it  be  taught  in  schools,  in  seminaries, 
and  in  colleges;  ...  let  it  be  preached  from  the  pulpit,  proclaimed  in 
legislative  halls,  and  enforced  in  the  courts  of  justice.  And,  in  short, 
let  it  become  the  poHtical  religion  of  he  nation;  and  let  the  old  and 
the  young,  the  rich  and  the  poor,  the  grave  and  the  gay  of  all  sexes 
and  tongues  and  colors  and  conditions,  sacrifice  unceasingly  upon 
its  altars.  .  .  . 

While  ever  a  state  of  feeling  such  as  this  shall  universally  or  even 
very  generally  prevail  throughout  the  nation,  vain  will  be  every 
effort,  and  fruitless  every  attempt  to  subvert  our  national  freedom, 


THE  PROBLEMS  OF  AMERICAN  DEMOCRACY  65 

When  I  so  pressingly  urge  a  strict  observance  of  all  the  laws,  let   Even  bad 
me  not  be  understood  as  saying  there  are  no  bad  laws,  or  that  griev-   b^obeyed'^ 
ances  may  not  arise,  for  the  redress  of  which  no  legal  provisions   until  they 
have  been  made.    I  mean  to  say  no  such  thing.    Put  I  do  mean  to   ^^pg^j^^^ 
say  that  although  bad  laws,  if  they  exist,  should  be  repealed  as  soon 
as  possible,  still,  while  they  continue  in  force,  for  the  sake  of  example 
they  should  be  religiously  observed.  .  .  . 


28.   Roosevelt  on  the  problems  of  American  life  ^ 

In  the  century  following  the  Farewell  Address  of  George  Washing-   Problem  of 
ton  the  problems  of  American   democracy  underwent    an    almost   ^^r Union 
unbeHevable  change.    The  fears  which  both  Washington  and  Jackson   less  urgent 
had  expressed  as  to  the  integrity  of  the  Union  proved  to  have  been   ^!^^^  ^^^^ 
justified  when  in  186 1  the  Civil  War  threatened  to  disrupt  the  nation. 
But  the  young  man  who  in  1837  had  pleaded  with  his  countrymen 
for  obedience  to  law  exercised  the  powers  of  the  Federal  Executive 
during  that  trying  period,  and  brought  the  disrupted  parts  back  into 
an  indissoluble  Union.     Since  the  Civil  War,  the  problem  of  the 
relation  of  the  states  to  the  Federal  government  has  occupied  a  rela- 
tively unimportant  position  in  the  minds  of  the  American  people. 

As  anxiety  for  the  integrity  of  the  Union  has  decreased,  an  increas-   The 
ing  amount  of  attention  has  been  demanded  by  other  issues.    With   J"^^^^^^^^ 
the  settlement  of  the  Great  West  and  the  industriaUzation  of  the  issues, 
entire  country,  the  problems  of  American  hfe  have  become  more 
and  more  urgent.     New  problems  have  arisen,  old  problems  have 
become  more  complex.     The  question  of  industrial  relations  in  a 
country  devoting  an  increasing  amount  of  attention  to  trade  and 
commerce,  the  social  effects  of  rapid  urban  growth,  the  necessity  of 
adjusting  the  governmental  machinery  to  cope  with  the  new  demands 
being  made  upon  it,  these  and  similar  developments  have  emphasized 
the  importance  of  the  problems  of  American  democracy. 

No  one  was  more  keenly  aware  of  the  urgency  of  these  problems,   The  second 
and  no  one  more  fearless  in  attacking  them,  than  Theodore  Roosevelt.   !^'JfjJJ.^s^of 
Below  is  the  full  text  of  his  second  inaugural  address,  in  which  he   Theodore 
visuahzes  the  outlook  for  American  democracy  in  1905:  foTr^^^^*' 

1  From  Theodore  Roosevelt,  Second  Inaugural  Address,  March  4,  1905. 


66 


READINGS  IN  AMERICAN   DEMOCRACY 


Fortune  has 
smiled  upon 
America. 


Yet  our 
position  is 
a  respon- 
sible one. 


Our 

attitude 

toward 

other 

nations. 


My  Fellow-Citizens:  No  people  on  earth  have  more  cause  to  be 
thankful  than  ours,  and  this  is  said  reverently,  in  no  spirit  of  boast- 
fulness  in  our  own  strength,  but  with  gratitude  to  the  Giver  of  Good 
who  has  blessed  us  with  the  conditions  which  have  enabled  us  to 
achieve  so  large  a  measure  of  well-being  and  of  happiness.  To  us  as 
a  people  it  has  been  granted  to  lay  the  foundations  of  our  national 
life  in  a  new  continent.  We  are  the  heirs  of  the  ages,  and  yet  we 
have  had  to  pay  few  of  the  penalties  which  in  old  countries  are  ex- 
acted by  the  dead  hand  of  a  bygone  civilization.  We  have  not  been 
obliged  to  fight  for  our  existence  against  any  alien  race;  and  yet 
our  life  has  called  for  the  vigor  and  effort  without  which  the  manlier 
and  hardier  virtues  wither  away,  i  Under  such  conditions  it  would 
be  our  own  fault  if  we  failed;  and  the  success  which  we  have  had  in 
the  past,  the  success  which  we  confidently  believe  the  future  will 
bring,  should  cause  in  us  no  feeling  of  vainglory,  but  rather  a  deep 
and  abiding  realization  of  aU  which  life  has  offered  us;  a  full  acknowl- 
edgment of  the  responsibility  which  is  ours;  and  a  fixed  determination 
to  show  that  under  a  free  government  a  mighty  people  can  thrive  best, 
alike  as  regards  the  things  of  the  body  and  the  things  of  the  soul. 

Much  has  been  given  us,  and  much  will  rightfully  be  expected 
from  us.  We  have  duties  to  others  and  duties  to  ourselves;  and  we 
can  shirk  neither.  We  have  become  a  great  nation,  forced  by  the 
fact  of  its  greatness  into  relations  with  the  other  nations  of  the 
earth,  and  we  must  behave  as  beseems  a  people  with  such  responsi- 
bihties.  Toward  aU  other  nations,  large  and  small,  our  attitude 
must  be  one  of  cordial  and  sincere  friendship.  We  must  show  not 
only  in  our  words,  but  in  our  deeds,  that  we  are  earnestly  desirous 
of  securing  their  good  wiU  by  acting  toward  them  in  a  spirit  of  just 
and  generous  recognition  of  all  their  rights.  But  justice  and  gener- 
osity in  a  nation,  as  in  an  individual,  count  most  when  shown  not 
by  the  weak  but  by  the  strong.  While  ever  careful  to  refrain  from 
wronging  others,  we  must  be  no  less  insistent  that  we  are  not  wronged 
ourselves.  We  wish  peace,  but  we  wish  the  peace  of  justice,  the  peace 
of  righteousness.  We  wish  it  because  we  think  it  is  right  and  not 
because  we  are  afraid.  No  weak  nation  that  acts  manfully  and 
justly  should  ever  have  cause  to  fear  us,  and  no  strong  power  should 
ever  be  able  to  single  us  out  as  a  subject  for  insolent  aggression. 


THE  PROBLEMS  OF  AMERICAN  DEMOCRACY  67 

Our  relations  with  the  other  powers  of  the  world  are  important;  The 
but  still  more  important  are  our  relations  among  ourselves.     Such   ^^^"^^^g^^^g 
growth  in  wealth,  in  population,  and  in  power  as  this  nation  has   of  modem 
seen  during  the  century  and  a  quarter  of  its  national  hfe  is  inevitably    '  ^" 
accompanied  by  a  Uke  growth  in  the  problems  which  are  ever  before 
every  nation  that  rises  to  greatness.     Power  invariably  means  both 
responsibility  and  danger.    Our  forefathers  faced  certain  perils  which 
we  have  outgrown.    We  now  face  other  perils,  the  very  existence  of 
which  it  was  impossible  that  they  should  foresee.     Modern  life  is 
both  complex  and  intense,  and  the  tremendous  changes  wrought  by 
the  extraordinary  industrial  development  of  the  last  half  century  are 
felt  in  every  fiber  of  our  social  and  political  being. 

Never  before  have  men  tried  so  vast  and  formidable  an  experi-  Democracy 
ment  as  that  of  administering  the  affairs  of  a  continent  under  the  g^^^g^^^g^^ 
forms  of  a  democratic  republic.  The  conditions  which  have  told 
for  our  marvelous  material  well-being,  which  have  developed  to 
a  very  high  degree  our  energy,  self-reliance,  and  individual  initiative, 
have  also  brought  the  care  and  anxiety  inseparable  from  the  accumu- 
lation of  great  wealth  in  industrial  centers.  Upon  the  success  of 
our  experiment  much  depends,  not  only  as  regards  our  own  welfare, 
but  as  regards  the  welfare  of  mankind.  If  we  fail,  the  cause  of  free 
self-government  throughout  the  world  will  rock  to  its  foundations, 
and  therefore  our  responsibility  is  heavy,  to  ourselves,  to  the  world 
as  it  is  to-day,  and  to  the  generations  yet  unborn.  There  is  no  good 
reason  why  we  should  fear  the  future,  but  there  is  every  reason  why 
we  should  face  it  seriously,  neither  hiding  from  ourselves  the  gravity 
of  the  problems  before  us  nor  fearing  to  approach  these  problems 
with  the  unbending,  unflinching  purpose  to  solve  them  aright. 

Yet,  after  all,  though  the  problems  are  new,  though  the  tasks  The  spirit 
set  before  us  differ  from  the  tasks  set  before  our  fathers  who  founded  ^^ j.^^^^. 
and  preserved  this  Republic,  the  spirit  in  which  these  tasks  must  lems  must 
be  undertaken  and  these  problems  faced,  if  our  duty  is  to  be  well 
done,  remains  essentially  unchanged.  We  know  that  self-govern- 
ment is  difficult.  We  know  that  no  people  needs  such  traits  of  char- 
acter as  that  people  which  seeks  to  govern  its  affairs  aright  through 
the  freely  expressed  will  of  the  freemen  who  compose  it. 

But  we  have  faith  that  we  shall  not  prove  false  to  the  memories 


be  faced. 


68 


READINGS  IN  AMERICAN  DEMOCRACY 


The  de- 
mands of 
the  times. 


of  the  men  of  the  mighty  past.  They  did  their  work,  they  left  us 
the  splendid  heritage  we  now  enjoy.  We  in  our  turn  have  an  assured 
confidence  that  we  shall  be  able  to  leave  this  heritage  unwasted  and 
enlarged  to  our  children  and  our  children's  children.  To  do  so  we 
must  show,  not  merely  in  great  crises,  but  in  the  everyday  affairs 
of  life,  the  quaUties  of  practical  intelligence,  of  courage,  of  hardihood, 
and  endurance,  and  above  all  the  power  of  devotion  to  a  lofty  ideal, 
which  made  great  the  men  who  founded  this  Republic  in  the  days 
of  Washington,  which  made  great  the  men  who  preserved  this  Repub- 
lic in  the  days  of  Abraham  Lincoln. 


Change 
in  our 
relation 
to  world 
affairs. 


Attempt 
of  the 
United 
States  to 
keep  out 
of  the 
World  War. 


29.   Wilson  on  the  dangers  of  the  World  War  period  ^ 

Not  only  did  the  purely  domestic  problems  of  American  democracy 
become  more  numerous  and  more  complex  after  the  opening  of  the 
twentieth  century,  but  the  attitude  of  the  United  States  toward 
world  issues  became  more  important.  Despite  the  advice  of  Wash- 
ington and  Jefferson  that  we  maintain  an  aloof  position  in  world 
affairs,  the  march  of  progress  has  made  this  impossible.  The  advanc- 
ing population  of  the  civUized  world,  the  increasing  facility  of  trans- 
portation and  communication  between  various  sections  of  the  globe, 
the  tendency  for  modern  nations  to  become  more  and  more  inter- 
dependent in  matters  of  trade  and  commerce,  these  and  other  develop- 
ments have  forced  the  United  States  to  realize  that  European  events 
affect  the  American  people. 

The  outbreak  of  the  World  War  in  the  summer  of  1914  aroused 
the  interest  and  sympathies  of  the  American  people,  but  increased, 
too,  their  desire  to  keep  out  of  a  struggle  which  originally  had 
nothing  to  do  with  American  issues.  But  the  fact  that  we  were  no 
longer  an  isolated  nation  made  this  impossible.  Though  we  attempted 
to  remain  aloof,  the  war  reached  out  and  touched  us  so  vitally  and  with 
such  repeated  insistence  that  by  the  opening  of  the  year  191 7  our 
entry  into  the  struggle  seemed  likely,  if  not  inevitable.  The  follow- 
ing are  extracts  from  the  second  inaugural  address  of  President 
Wilson,  who  early  in  191 7  realized  that  the  nation  faced  new  issues 
of  a  serious  and  threatening  nature: 

1  From  Woodrow  Wilson,  Second  Inaugural  Address,  March  5,  191 7. 


THE  PROBLEMS  OF  AMERICAN  DEMOCRACY  69 

My  Fellow-Citizens:    The   four  years  which   have   elapsed   since   The  record 
last  I  stood  in  this  place  have  been  crowded  with  counsel  and  action   ^g^^^.^^ 
of  the  most  vital  interest  and  consequence.    Perhaps  no  equal  period  in   people, 
our  history  has  been  so  fruitful  of  important  reforms  in  our  economic 
and  industrial  life,  or  so  full  of  significant  changes  in  the  spirit  and 
purpose  of  our  political  action.    We  have  sought  very  thoughtfully 
to  set  our  house  in  order,  correct  the  grosser  errors  and  abuses  of 
our  industrial  life,  Uberate  and  quicken  the  processes  of  our  national 
genius  and  energy,  and  lift  our  poUtics  to  a  broader  view  of  the 
people's  essential  interests.     It  is  a  record  of  singular  variety  and 
singular  distinction.    But  I  shall  not  attempt  to  review  it.  .  .  .  This 
is  not  the  time  for  retrospect.    It   is  time,   rather,   to  speak  our 
thoughts  and  purposes  concerning  the  present  and  the  immediate 
future. 

Although  we  have  centered  counsel  and  action  with  such  unusual   Effect  of 
concentration   and   success   upon   the   great   problems  of   domestic   ^     °'' 
legislation,  .  .  .  other  matters  have  more  and  more  forced  them-   America, 
selves  upon  our  attention,  matters  lying  outside  our  own  life  as  a 
nation,  and  over  which  we  had  no  control.  .  .  .  The  war  inevitably 
set  its  mark  from  the  first  alike  upon  our  minds,  our  industries,  our 
commerce,  our  politics,  and  our  social  action.     To  be  indifferent  to 
it  or  independent  of  it  was  out  of  the  question.  .  .  . 

There  are  many  things  still  to  do  at  home,  to  clarify  our  own   Pressing 
poUtics  and  give  new  vitality  to  the  industrial  processes  of  our  own   "^  ^^ 
life,  and  we  shall  do  them  as  time  and  opportunity  serve;   but  we   foreign 
reaUze  that  the  greatest  things  that  remain  to  be  done  must  be   situation, 
done  with  the  whole  world  for  stage  and  in  cooperation  with  the 
wide  and  universal  forces  of  mankind,  and  we  are  making  our  spirits 
ready  for  those  things.    They  will  follow  in  the  immediate  wake  of 
the  war  itself  and  will  set  civilization  up  again.    We  are  provincials 
no  longer.    The  tragical  events  of  the  thirty  months  of  vital  turmoil 
through  which  we  have  just  passed  have  made  us  citizens  of  the 
world.  .  .  , 

And  yet  we  are  not  the  less  Americans  on  that  account.    We  shall   Principles 
be  the  more  American  if  we  but  remain  true  to  the  principles  in  °.j^  mencan 
which   we   have   been  bred.  ... 

I  need  not  argue  these  principles  to  you,  my  fellow-countrymen: 


70 


READINGS  IN  AMERICAN  DEMOCRACY 


The  call 
for  a  unity 
of  purpose 
and  action. 


they  are  your  own,  part  and  parcel  of  your  own  thinking  and  yoixr 
own  motive  in  affairs.  .  .  . 

And  it  is  imperative  that  we  should  stand  together.  We  are  being 
forged  into  a  new  unity  amidst  fires  that  now  blaze  throughout 
the  world.  In  their  ardent  heat  we  shall,  in  God's  providence,  let 
us  hope,  be  purged  of  faction  and  division,  purified  of  the  errant 
humors  of  party  and  of  private  interest,  and  shall  stand  forth  in  the 
days  to  come  with  a  new  dignity  of  national  pride  and  spirit.  Let 
each  man  see  to  it  that  the  dedication  is  in  his  own  heart,  the  high 
purpose  of  the  nation  in  his  own  mind,  nxler  of  his  own  will  and 
desire.  .  .  . 


Effect  of 
the  World 
War  upon 
the  prob- 
lems of 
American 
democracy. 


Status  of 
the  Con- 
stitution. 


30.   Harding  on  the  issues  of  the  Twentieth  Century  ^ 

From  the  standpoint  of  the  United  States,  the  World  War  was 
an  abnormal  phenomenon  which  exaggerated  and  distorted  those 
issues  which  are  purely  American.  But  though  the  cessation  of 
hostihties  on  November  ii,  1918,  purged  American  life  of  many 
issues  which  had  been  purely  abnormal  and  transitory,  the  World 
War  exerted  upon  our  national  hfe  many  influences  which  are  proving 
to  be  both  profound  and  permanent.  Just  as  the  American  Revolu- 
tion deeply  affected  our  early  national  life,  and  just  as  the  effects 
of  the  Civil  War  can  stiU  be  traced  in  current  issues,  so  the  World 
War  modified  our  attitude,  not  only  toward  world  affairs,  but  toward 
purely  domestic  concerns  as  well.  In  January,  1920,  this  changed 
viewpoint  was  the  subject  of  an  address  by  Warren  G.  Harding, 
then  United  States  Senator  from  Ohio.  The  following  are  extracts 
from  his  address: 

...  I  have  come  to  think  it  fundamentally  and  patriotically  Ameri- 
can to  say  there  is  no  room  anywhere  in  these  United  States  for  any 
one  who  preaches  destruction  of  the  government  which  is  within 
the  Constitution.  This  patriotically,  if  not  divinely,  inspired  funda- 
mental law  fits  every  real  American  citizen,  and  the  man  who  cannot 
fit  himself  to  it  is  not  fit  for  American  citizenship,  nor  deserving 
of  our  hospitality.    It  fuUy  covers  all  classes  and  masses  in  its  guaran- 


1  From  Warren  G.  Harding,  Address  delivered  before  Ike  Ohio  Society  of  New 
York,  New  York  City,  January  10,  1920. 


THE  PROBLEMS  OF  AMERICAN   DEMOCRACY  7 1 

teed  liberties,  and  any  class  or  mass  that  opposed  the  Constitution 
is  against  the  country  and  the  flag.  .  .  . 

What   humanity   most   needs  just   now  is  understanding.     The    What 
present-day  situation  is  more  acute  because  we  are  in  the  ferment   humanity 
that  came  of  war  and  war's  aftermath.     Ours  was  a  fevered  world, 
sometimes  flighty,  as  we  used  to  say  in  the  village,  to  suggest  fever's 
fancies  or  delirium.    But  we  are  slow  getting  normal  again,  and  the 
world  needs  sanity  as  it  seldom  needed  it  before.  .  .  . 

Normal  thinking  will  help  more.     And  normal  hving  will  have   Back  to 
the  effect  of  a  magician's  wand,  paradoxical  as  the  statement  seems.   '^^^^^  • 
The  world  does  deeply  need  to  get  normal,  and  liberal  doses  of  mental 
science  freely  mixed  with  resolution  will  help  mightily.     I  do  not 
mean  the  old  order  wiU  be  restored.    It  will  never  come  again.  .  .  . 

But  there  is  a  sane  normalcy  due  under  the  new  conditions,  to  be    Certain 
reached  in  deliberation  and  understanding.  And  all  men  must  under-   Principles 
stand  and  join  in  reaching  it.     Certain  fundamentals  are  unchange-   fundamental 
able  and  everlasting.    Life  without  toU  never  was  and  never  can  be.   ^?|    ^""  . 
Ease  and  competence  are  not  to  be  seized  in  frenzied  envy;    they 
are  the  reward  of  thrift  and  industry  and  denial.     There  can  be  no 
excellence  without  great  labor.     There  is  no  reward  except  as  it  is 
merited.     Lowered  cost  of  living  and  increased  cost  of  production 
are  an  economic  fraud.    Capital  makes  possible  while  labor  produces, 
and  neither  ever  achieved  without  the  other,  and  both  of  them  to- 
gether never  wrought  a  success  without  genius  and  management.  .  .  . 
It  would   halt   the   great   procession  to   time    our    steps  with   the   Thrift, 
indolent,   the  lazy,   the   incapable,    or    the   sullenly   envious.    Nor   ^Jjj"^jj||j^^"5' 
can  we  risk  the  course  sometimes  suggested  by  excessive  wealth  and   try. 
its  ofttimes  insolent  assumption  of  power.    But  we  can  practice  thrift 
and  industry,  we  can  live  simply  and  commend  righteous  achieve- 
ment, we  can  make  honest  success  an  inspiration  to  succeed,  and 
we  can  march  hopefully  on  to  the  chorus  of  liberty,  opportunity, 
and  justice.  .  .  . 

There  can  be  no  Hberty  without  security,  and  there  can  be  no   The 
security  without  the  supremacy  of  law  and  the  majesty  of  just  gov-   Constitution 
ernment.     In  the  gleaming  Americanism  of  the  Constitution  there   to  pubUc 
is  neither  fear  nor  favor,  but  there  are  equal  rights  to  all,  equal   op^^ion. 
opportunities  beckoning  to  every  man,  and  justice  untrammeled.  .  .  . 


72 


READINGS  IN  AMERICAN  DEMOCRACY 


America's 
course. 


Duty  to 
cherish 
American 
nationality. 


This  not 
inconsistent 
with  our 
duty  toward 
foreign 
nations. 


America 

first! 


Governmental  policies  change  and  laws  are  altered  to  meet  the 
changed  conditions  which  attend  all  human  progress.  [But]  there 
are  orderly  processes  for  these  necessary  changes.  Let  no  one 
proclaim  the  Constitution  unresponsive  to  the  conscience  of  the 
repubhc.  .  .  . 

Our  American  course  is  straight  ahead,  with  liberty  under  the 
law,  and  freedom  glorified  in  righteous  restraint.  Reason  illumines 
our  onward  path,  and  dehberate,  intelligent  pubhc  opinion  reveals 
every  pitfall  and  byway  which  must  be  avoided.  America  spurns 
every  committal  to  the  limits  of  mediocrity  and  bids  every  man  to 
climb  to  the  heights  and  rewards  him  as  he  merits  it."  This  is  the 
essence  of  liberty  and  made  us  what  we  are.  Our  system  may  be 
imperfect,  but  under  it  we  have  wrought  to  world  astonishment, 
and  we  are  only  fairly  begun.  .  .  . 

Mr.  Toast  master,  we  have  been  hearing  lately  of  the  selfishness 
of  nationality,  and  it  has  been  urged  that  we  must  abandon  it  in 
order  to  perform  our  full  duty  to  humanity  and  civihzation.  Let 
us  hesitate  before  we  surrender  the  nationality  which  is  the  very 
soul  of  highest  Americanism.  This  republic  has  never  failed  humanity 
or  endangered  civilization.  We  have  been  tardy  about  it,  like  when 
we  were  proclaiming  democracy  and  neutrality  while  we  ignored 
our  national  rights,  but  the  ultimate  and  helpful  part  we  played  in 
the  great  war  will  be  the  pride  of  Americans  so  long  as  the  world 
recites  the  story. 

We  do  not  mean  to  hold  aloof,  we  choose  no  isolation,  we  shun  no 
duty.  I  like  to  rejoice  in  an  American  conscience  and  in  a  big  con- 
ception of  our  obhgations  to  liberty,  justice  and  civihzation.  Aye, 
and  more,  I  like  to  think  of  Columbia's  helping  hand  to  new  republics 
which  are  seeking  the  blessings  portrayed  in  our  example.  But  I 
have  a  confidence  in  our  America  that  requires  no  council  of  foreign 
powers  to  point  the  way  of  American  duty.  .  .  . 

Call  it  the  selfishness  of  nationality,  I  think  it  an  inspiration 
to  patriotic  devotion  to  safeguard  America  first,  to  stabilize  America 
first,  to  prosper  America  first,  to  think  of  America  first,  to  exalt 
America  first,  and  to  live  for  and  revere  America  first.  We  may  do 
more  than  prove  exemplars  to  the  world  of  enduring,  representative 
democracy  where  the  Constitution  and  its  liberties  are  unshaken. 


THE   PROBLEMS  OF  AMERICAN  DEMOCRACY  73 

We  may  go  on  securely  to  the  destined  fulfillment  and  make  a  strong 
and  generous  nation's  contribution  to  human  progress,  forceful  in 
example,  generous  in  contribution,  helpful  in  all  suffering,  and  fear- 
less in  all  conflicts.  ... 


Questions  on  the  foregoing  Readings 


I 


What  was  the  object  of  Washington's  Farewell  Address? 

2.  What  did  Washington  say  concerning  innovations? 

3.  What  was  Washington's  opinion  of  the  political  party? 

4.  Why  did  Washington  warn  the  American  people  against  foreign 

influence? 

5.  What  two  great  problems  faced  President  Jackson  in  1833? 

6.  What  double  duty  did  Jackson  consider  as  resting  upon  him? 

7.  Upon  what  subject  did  Abraham  Lincoln  address  the  Springfield 

Lyceum  in  1837? 

8.  In  what  way  was  the  position  of  the  American  .people  a  favored 

one  in  Lincoln's  time? 

9.  Contrast  the  duty  of  the  American  people  in  Lincoln's  time  with 

the  duty  of  the  earlier  American  patriots. 

10.  What  did  Lincoln  say  concerning  the  danger  of  lawlessness? 

11.  How  did  he  recommend  that  this  danger  be  guarded  against? 

12.  What  did  Lincoln  say  as  to  the  attitude  of  the  citizen  toward 

bad  laws?  - 

13.  What  American  problem  declined  in  importance  after  the  period 

of  the  Civil  War? 

14.  Name  a  few  problems  which  took  on  increased  importance  after 

the  Civil  War. 
15     What  did  Roosevelt  say  concerning  our  attitude  toward  other 
nations? 

16.  What,  according  to  Roosevelt,  have  been  some  of  the  effects  of 

modern  life  upon  our  problems? 

17.  What  did  Roosevelt  say  concerning  democracy  as  an  experiment? 

18.  What,  according  to   Roosevelt,  are  the  qualities  needed  by   the 

American  citizen  in  the  affairs  of  everyday  life? 

19.  In  what  way  did  the  march  of  progress  make  it  impossible  for  us 

to  hold  aloof  from  European  affairs? 

20.  Why  were  we  unable  to  remain  indifferent  to  the  World  War? 

21.  Outline  President  Wilson's  call  for  a  unity  of  purpose  and  action 

in  1917. 

22.  Discuss  the  effect  of  the  World  War  upon  the  problems  of  American 

democracy. 


74  READINGS  IN  AMERICAN  DEMOCRACY 

23.  What,  according  to  President  Harding,  is  the  status  of  the   Con- 

stitution of  the  United  States? 

24.  In  what  way  did  President  Harding  believe  that  the  war-stricken 

world  could  get  back  to  normal? 

25.  Outline  the  essentials  of  President  Harding's  "  America  First  " 

program. 


PART  II  —  AMERICAN  ECONOMIC  PROBLEMS 

a.  Economics  of  American  Industry 

CHAPTER    VI 

THE   NATURE   OF  AMERICAN   INDUSTRY 

31.   Natural  resources  of  the  nation  ^ 

Industrial  development  and  material  prosperity  depend  primarily   Factors 
upon  two  factors:  first,  natural  resources;   and  second,  the  character   |'°J^5jJ.i°i"^^ 
of  the  people.     From  the  earUest  times,  the  territory  now  included   success, 
within  the  bounds  of  the  United  States  has  been  celebrated  for  its 
great  extent,  the  favorable  character  of  its  cUmate,  and  the  abundance 
and  diversity  of  its  natural  resources.     America  has  offered  every- 
thing which  a  virile,  energetic  people  could  consider  necessary  to 
the  development  of  an  industrial  civilization.     Some  of  the  more 
important  of  the  natural  resources  of  the  United  States  are  described 
by  Professor  Bogart  as  follows: 

...  By  the  treaty  of  Paris,  1783,  the  new  nation  came  into  posses-   Area  of  the 
sion  of  an  immense  domain  of  827,844  square  miles.     Since  that    c^.l 
time  the  area  of  the  United  States  has  been  vastly  increased,  by 
purchase,  by  conquest,  and  by  cession,  until,  in  1900,  the  United 
States  consisted  of  3,726,500  square  miles  or  about  one  fourteenth 
of  the  entire  land  surface  of  the  earth.  .  .  . 

The  advantages  to  a  nation  of  having  a  seacoast  weU  provided  Coast 
with  numerous  bays  and  harbors  are  obvious.  Not  less  important  ^"^  ^"^avs 
for  the  internal  commerce  of  a  country'  is  a  system  of  long  and  navi- 
gable rivers.  In  both  these  respects  the  United  States  is  wonderfully 
well  provided.  The  Mississippi  River  with  its  tributaries  drains 
over  1,000,000  square  miles  of  territory  in  the  very  heart  of  the  most 
fertile  region  of  the  country.  Cities  more  than  1000  miles  inland 
have  direct  water  communication  with  the  seaboard,  and  coal  is 

'  From  Ernest  L.  Bogart,  The  Economic  History  of  the  United  States.     Long- 
mans, Green  &  Co.,  1912;  pp.  2-15. 

75 


76 


READINGS  IN  AMERICAN   DEMOCRACY 


Extent  and 
quality  of 
our  coal 
deposits. 


Iron 
resources. 


Other 
metals. 


Forests. 


transported  more  than  looo  miles  from  Pittsburg  to  the  upper  reaches 
of  the  Missouri  River.  Altogether,  it  is  estimated  that  there  are 
18,000  miles  of  navigable  rivers  in  the  United  States,  while  the  shore 
line  of  the  Great  Lakes  extends  for  at  least  1500  miles  more.  ,  .  . 

Fortunately  for  the  human  race,  coal  is  widely  distributed  through- 
out the  world,  although  Europe  and  the  United  States  to-day  supply 
practically  aU  the  coal  now  mined.  Professor  Tarr  estimates  the 
actual  coal-producing  area  in  the  United  States  at  not  over  50,000 
square  mUes,  of  which  only  a  small  part  is  being  worked.  ...  By 
far  the  greatest  part  of  our  available  supply  is  bituminous,  the  area 
which  is  underlaid  with  anthracite  being  not  more  than  484  square 
mUes.  Not  merely  in  the  extent  of  the  area  underlaid  with  coal 
are  we  favorably  situated,  but  our  superiority  over  Europe  and  the 
rest  of  the  world  is  made  more  evident  by  a  comparison  of  the  thick- 
ness of  the  seams,  the  depth,  the  dip,  and  the  cost  of  working.  In 
all  these  respects  we  have  an  advantage. 

Next  in  importance  to  the  fuel  supplies  of  the  United  States  rank 
its  stores  of  iron  ore.  These  exist  in  large  quantity  and  are  widely 
disseminated.  .  .  .  Iron  and  coal,  more  than  any  other  mineral 
substances,  form  the  material  basis  of  our  industrial  prosperity,  and 
in  the  possession  of  large  supplies  of  both,  the  United  States  is  greatly 
blessed. 

Next  after  iron,  copper  ranks  as  the  most  necessary  in  the  indus- 
trial arts.  .  .  .  The  United  States  is  the  greatest  copper-producing 
country  in  the  world,  turning  out  over  half  of  the  total  amount.  .  .  . 
Lead  and  zinc  are  usually  found  associated.  ...  In  the  production 
of  both  of  these,  the  United  States  is  surpassed  by  Europe.  .  .  . 
Of  far  greater  value,  though  of  subordinate  importance  in  the  in- 
dustrial arts,  are  the  so-called  precious  metals  —  gold  and  silver. 
In  the  production  of  both  of  these,  the  United  States  ranks  second, 
the  first  places  being  held  respectively  by  the  Transvaal  and  by 
Mexico.  .  .  . 

The  forests  of  the  United  States  cover  an  area  of  about  700  million 
acres,  or  more  than  35  per  cent  of  the  area  of  the  country.  Of  these 
by  far  the  greater  part  is  found  in  the  section  east  of  the  Mississippi 
which  originally  was  a  vast  continuous  forest.  ...  In  the  Missis- 
sippi valley  are  found  the  hardwood  forests  of  oaks,  hickories,  ashes. 


THE  NATURE  OF  AMERICAN  INDUSTRY  77 

gums,  etc.  West  of  the  Mississippi  stretches  a  forestless,  often 
treeless,  area  of  milHons  of  acres;  with  the  Rocky  Mountains  begins 
again  the  coniferous  interior  forest,  and  still  further  west  the  Pacific 
coast  forest.  .  .  . 

Among  the  valuable  resources  of  a  country  should  be  included   Climate 
a  good  climate  and  a  fertile  soil:   together,  these  are  of  great  impor-   ^'^^  ^°'** 
tance  in  promoting  the  welfare,  prosperity,  and  material  comfort 
of  the  people.    Considered  as  a  whole,  the  fertility  of  the  soil  of  the 

United  States  is  remarkably  great It  is  noteworthy  that  North 

America  is  broadest  in  the  temperate  zone  and  tapers  down  to  a 
narrow  point  in  the  tropical  zone,  in  which  respect  it  is  the  opposite 
of  South  America  or  Africa.  ...  v 

In  its  direct  effect  upon  the  race  which  has  grown  up  in  the  new   Effect 

world,  the  environment  seems  to  have  made  for  a  stronger  and  hardier    .       . 

American 
people  than  any  of  those  of  the  old  world.  .  .  .    "  When  one  considers   environment 

all  these  things,"  says  Channing,  "the  climate  and  rainfall  of  the   "P°^  ^^^ 

European 

United  States,  its  physical  configuration,  its  adaptability  to  the  race, 
service  of  civilized  man,  its  fertile  soUs  and  magnificent  water  powers, 
its  inexhaustible  mineral  resources,  and  the  effect  of  this  environ- 
ment on  the  physical  body,  one  must  admit  that  the  European  race 
has  gained  by  its  transfer  from  its  ancient  home  to  the  soU  of  the 
United  States." 

32.    Growth  of  population  in  the  United  States  ^ 

The  rapid  colonization  of  the  New  World  discovered  by  Columbus   Rapid 
is  one  of  the  most  striking  facts  in  modern  history.    Once  the  people   '^o'onization 
of  Europe  became  aware  of  the  rich  natural  resources  of    the  North   New  World. 
American   continent,  there  was  a  steadUy  increasing   migration  of 
home-seekers  to  the  new  land.    Every  important  country  in  North- 
western Europe  contributed  to  the  colonial  population  of  the  Atlantic 
seaboard,  and,  later,  to  the  multitudes  which  spread  westward  into 
the  Mississippi  valley  and  onward  to  the  Pacific  Coast.    The  growth 
and  spread  of  the  population  of  the  United  States  have  been  described 
by  the  Bureau  of  the  Census  in  the  following  language: 

The  first  census  of  the  United  States,  taken  as  of  the  first  Monday 

'  From  the  United  States  Bureau  of  the  Census,  Statistical  Atlas  of  the  United 
States.     Washington,  1914;   pp.  13-23. 


78 


READINGS   IN   AMERICAN  DEMOCRACY 


The  popu- 
lation 
of  the 
United 
States 
in  1790. 


Extension 
of  the 
frontier 
line  be- 
tween 1800 
and  i860. 


The  decade 
1870  to 
1880. 


The  pop- 
ulation 
between 
1880  and 
1890. 


in  August,  1790  .  .  .  showed  the  population  of  the  thirteen  States 
then  existing,  and  of  the  unorganized  territory,  to  be,  in  the  ag- 
gregate, 3,929,214.  This  population  was  distributed  .  .  .  almost 
entirely  along  the  Atlantic  seaboard.  .  .  .  Only  a  very  small  pro- 
portion of  the  inhabitants  of  the  United  States,  not  indeed  more 
than  5  per  cent,  was  found  west  of  the  Appalachian  Mountains.  .  .  . 

At  the  second  census,  that  of  1800,  the  frontier  line  .  .  .  had  ad- 
vanced. .  .  . 

During  the  decade  from  1800  to  1810  great  changes  will  be  noted, 
especially  the  extension  of  sparse  settlements  in  the  interior.  The 
hills  of  western  New  York  had  become  almost  entirely  populated. 
The  occupation  of  the  Ohio  River  valley  had  now  become  com- 
plete, from  its  head  to  its  mouth,  with  the  exception  of  small  groups 
below  the  mouth  of  the  Tennessee.  .  .  . 

In  1830  the  frontier  line  had  a  length  of  5300  miles,  and  the  aggre- 
gate area  embraced  between  the  Atlantic  Ocean,  the  Gulf  of  Mexico, 
and  the  frontier  line  was  725,406  square  miles.  .  .  . 

The  frontier  line  which  now  [1850]  extended  around  a  considerable 
part  of  Texas  and  issued  on  the  Gulf  Coast  at  the  mouth  of  the 
Nueces  River,  was  4500  miles  in  length.  .  .  . 

In  i860  the  first  extension  of  settlement  beyond  the  line  of  the 
Missouri  River  is  noted.  The  march  of  settlement  up  the  slope  of 
the  Great  Plains  had  begun.  .  .  . 

During  the  decade  from  1870  to  1880  .  .  .  the  first  noticeable 
point  ...  is  the  great  extent  of  territory  which  was  brought  under 
occupation  during  the  decade.  Not  only  had  settlement  spread 
west  over  large  areas  in  Dakota,  Nebraska,  Kansas  and  Texas,  thus 
moving  the  frontier  hne  of  the  main  body  of  settlement  west  many 
scores  of  miles,  but  the  isolated  settlements  of  the  CordiUeran  Region 
and  of  the  Pacific  coast  showed  enormous  accessions  of  occupied 
territory.  .  .  . 

[Between  1880  and  1890]  the  most  striking  fact  connected  with 
the  extension  of  settlement  .  .  .  was  the  numerous  additions  which 
were  made  to  the  settled  area  within  the  CordiUeran  Region.  .  ,  . 
Settlements  spread  westward  up  the  slope  of  the  plains,  until  they 
joined  the  bodies  formerly  isolated  in  Colorado,  forming  a  continuous 
body  of  settlement  from  the  East  to  the  Rocky  Mountains.  .  .  . 


THE  NATURE  OF  AMERICAN  INDUSTRY      79 

The  twelfth  census  [1900]  marked  no  years  of  growth  of  the   Census 
United  States,  during  which  period  the  population  increased  more   °'  ^^°°- 
than  twenty-one  times,  and  the  country  grew  from  groups  of  settle- 
ments of  less  than  four  million  people  to  one  of  the  leading  nations 
of  the  world,  with  a  population  of  nearly  85,000,000.  .  .  . 

The  returns  of  the  thirteenth  census  [1910]  measure  the  growth   Population 
of  the  United  States  after  120  years  of  development.    During  this  °^  *^^ 
period  the  country  has  grown  from  less  than  four  milhon  inhabitants   States: 
to  more  than  90,000,000.  .  .  .    [Of  a  number  of  important  countries   summary, 
which  the  Federal  Census  Bureau  has  compared  with  respect  to  popu- 
lation], the  United  States  was  eighth  in  1800,  but  during  the  century 
its  population  increased  so  rapidly  that  it  passed  Spain,  Italy,  the 
United   Kingdom,    Austria-Hungary,    France    and    Germany,    and, 
at  the  census  of  1880,  and  since  that  census,  has  been  second,  stand- 
ing just  below  Russia.  ... 


33.    Occupations  of  the  American  people  ^ 

In  the  three  centuries  which  have  elapsed  since  the  English  began  More  than 

serious  colonization  on  the  coast  of  North  America,  the  territory   ^  hundred 

million 

now  embraced  within  the  United  States  has  become  the  home  of   people  have 
more  than  a  hundred  million  people.    This  is  a  striking  tribute,  not    °        . 
only  to  the  appeal  of  the  rich  resources  of  America,  but  to  the  ability   the  United 
of  our  population  to  support  and  perpetuate  itself  in  industrial  and   states, 
professional  pursuits.     The  versatile  character  of  the  population  of 
the  United  States  is  shown  by  an  enumeration  of  the  chief  occupa- 
tions by  means  of  which  our  people  earn  their  living.    The  following 
summary  is  from  the  census  of  the  United  States: 

1  From  the  Thirteenth  Census  oj  the  United  States.    Washington,  1910.    Vol.  rv. 
P-  53- 


8o 


READINGS  IN  AMERICAN   DEMOCRACY 


Number  of  Persons  Ten  Years  of  Age  and  over  engaged 
IN  Principal  Occupations,  1910. 


Occupation 


Agriculture 
and  allied 
industries. 


Mining. 


Manufac- 
turing and 
mechanical 
industries. 


Total 


All  occupations 

Agriculture,  forestry,  and  animal  husbandry  .  . 

Dairy  farmers 

Dairy  farm  laborers 

Farmers 

Farm  laborers 

Fishermen  and  oystermen 

Gardeners,  florists,  fruit  growers,  and  nurserymen. 
Garden,  greenhouse,  orchard,  and  nursery  laborers 

Lumbermen,  raftsmen,  and  woodchoppers 

Stock  herders,  drovers,  and  feeders 

Stock  raisers 

All  others  in  this  division 

Extraction  of  minerals 

Coal  mine  operatives 

Gold  and  silver  mine  operatives 

Other  mine  operatives 

Quarry  operatives 

All  others  in  this  division 

Manufacturing  and  mechanical  industries 

Apprentices 

Bakers 

Blacksmiths,  forgemen,  and  hammermen 

Brick  and  stone  masons 

Builders  and  building  contractors 

Carpenters 

Compositors,  linotypers,  and  typesetters 

Dressmakers  and  seamstresses  (not  in  factory) .  .  .  . 

Electricians  and  electrical  engineers 

Engineers  (stationary) 

Firemen  (except  locomotive  and  fire  department) .  . 

Foremen  and  overseers  (manufacturing) 

Laborers: 

Clay,  glass,  and  stone  industries 

Food  industries 

General  and  not  specified  laborers 

Helpers  in  building  and  hand  trades 


38,167,336 


12,659,203 

61,816 

35,014 
5,865,003 

5.975,057 
68,27s 

139,25s 
133,927 
161,268 

62,975 

52,521 

104,092 

964,824 


613,924 
55,436 

136,12s 
80,840 
78,499 

10,658,881 


118,964 

89,531 
240,519 
169,402 
174,422 
817,120 
127,589 
449,342 
135,519 
231,041 
111,248 
175,098 

154,826 
82,015 

869,478 
65,431 


THE  NATURE  OF  AMERICAN  INDUSTRY 


8i 


Occupation 


Total 


Lumber  and  furniture  industries 

Metal  industries 

Textile  industries 

All  other  industries 

Machinists,  millwrights,  and  toohnakers 

Managers  and  superintendents  (manufacturing) .  .  . 

Manufacturers  and  officials 

Milliners  and  millinery  dealers 

Molders,  founders,  and  casters  (metal) 

Painters,  glaziers,  varnishers,  enamelers,  etc 

Plumbers  and  gas  and  steam  fitters 

Semiskilled  operatives: 

Cigar  and  tobacco  factories 

Clay,  glass,  and  stone  industries 

Clothing  industries 

Food  industries 

Lumber  and  furniture  industries 

Metal  industries 

Printing  and  publishing 

Shoe  factories 

Textile  industries 

All  other  industries 

Sewers  and  sewing  machine  operators  (factory) .  . 

Shoemakers  and  cobblers  (not  in  factory) 

Tailors  and  tailoresses 

Tinsmiths  and  coppersmiths 

All  others  in  this  division 

Transportation 

Brakemen 

Conductors  (steam  raihoad) 

Conductors  (street  railroad) 

Draymen,  teamsters,  and  expressmen 

Foremen  and  overseers  (railroad) 

Hostlers  and  stable  hands 

Laborers  (railroad,  steam  and  street) 

Laborers  (road  and  street  building  and  repairing) 

Locomotive  engineers 

Locomotive  fijemen : 

Longshoremen  and  stevedores 

Mail  carriers 

Motormen 

Switchmen,  flagmen,  and  yardmen : 

Telegraph  operators 


317.244 
527.714 
87,146 
385.852 
488,049 
104,210 

256,591 
127,906 
120,900 

337,355 
148,304 

151.519 
88,628 

144,607 

88,834 
167,490 
438,063 

67,469 
181,010 
650,260 

463,655 

291,209 

69,570 

204,608 

59.833 
679,310 

2,637,671 


92,572 

65.604 

56,932 

408,469 

69.933 
63.388 

570.975 
180,468 
96,229 
76,381 
62,857 
80,678 
S9.00S 
85.147 
69,953 


Transpor- 
tation. 


82 


READINGS  IN   AMERICAN  DEMOCRACY 


Occupation 


Trade. 


Public  and 


professional 
service. 


Domestic 
and  per- 
sonal serv- 


ice. 


Telephone  operators •. 

All  others  in  this  division 

Trade 

Bankers,  brokers,  and  money  lenders 

Clerks  in  stores 

Commercial  travelers 

Deliverymen 

Insurance  agents  and  oiBcials 

Laborers  in  coal  and  lumber  yards,  warehouses,  etc. 

Laborers,  porters,  and  helpers  in  stores 

Real  estate  agents  and  officials 

Retail  dealers 

Salesmen  and  saleswomen 

Wholesale  dealers,  importers,  and  exporters 

All  others  in  this  division 

Public  service  (not  elsewhere  classified) , 

Guards,  watchmen,  and  doorkeepers 

Laborers  (public  service) 

Officials  and  inspectors  (city  and  county) 

Officials  and  inspectors  (state  and  United  States) . . 

PoUcemen 

Soldiers,  sailors,  and  marines 

All  others  in  this  division 

Professional  service 

Actors 

Artists,  sculptors,  and  teachers  of  art 

Civil  and  mining  engineers  and  surveyors 

Clergymen 

Lawyers,  judges,  and  justices 

Musicians  and  teachers  of  music 

Physicians  and  surgeons 

Teachers 

Trained  nurses 

All  others  in  this  division , 

Domestic  and  personal  service , 

Barbers,  hairdressers,  and  manicurists 

Bartenders 

Boarding  and  lodging  house  keepers 


Total 


97,893 
501,187 

3,614,670 

105,804 

387,183 

163,620 

229,619 

97,964 

81,123 

102,333 

125,862 

1,195,029 

921,130 

51,048 

•153.955 

459,291 

78,271 

67.234 
52,254 
52,926 
61,980 
77,153 
69,473 

1,663,569 


28,297 

34,104 

58.963 

118,018 

114,704 

139.310 

151. 132 

599.237 

82,327 

337,477 
3,772,174 


195,275 
101,234 

165,452 


THE  NATURE  OF  AMERICAN  INDUSTRY 


83 


Occupation 


Charwomen  and  cleaners 

Hotel  keepers  and  managers 

Housekeepers  and  stewards 

Janitors  and  sextons 

Laborers  (domestic  and  professional  service) . 
Launderers  and  laundresses  (not  in  laundry) 

Laundry  operatives 

Midwives  and  nurses  (not  trained) 

Porters  (except  in  stores) 

Restaurant,  cafe,  and  lunch-room  keepers.  .  . 

Saloon  keepers , 

Servants 

Waiters 

All  others  in  this  division , 

Clerical  occupations 

Agents,  canvassers,  and  collectors 

Bookkeepers,  cashiers,  and  accovmtants 

Clerks  (except  clerks  in  stores) 

Messenger,  bimdle,  and  ofl5ce  boys 

Stenographers  and  typewriters 


Total 


34.034 

64.504 

189.273 

1 13.081 

53.480 

533.697 
111,879 

133,043 

84,128 

60,832 

68,215 

1.572,22s 

188,293 

103.529 

1,737,053 


105,127 
486,790 
720,408 
108,03s 
316,693 


Clerical 
occupations. 


34.    Governmental  encouragement  of  business  ^ 

Our  industrial  success  has  been  due  chiefly  to  the  richness  of  our   Importance 

natural  resources  on  the  one  hand,  and  to  the  viriHty  and  energy  of   ^   ^°° 

'  -^  '^■'  government 

the  American  people  on  the  other.  But  however  rich  in  natural  re-  to  industry, 
sources  a  country  may  be,  and  however  industrious  the  individuals 
in  control  of  those  resources,  industrial  success  cannot  be  attained 
without  a  good  government.  A  great  factor  in  the  material  pros- 
perity of  the  American  people,  therefore,  has  been  the  helpful  atti- 
tude of  our  government.  The  following  passages  briefly  describe 
some  of  the  more  important  services  rendered  American  business 
by  the  Federal  government: 

The  bureau  of  public  health  in  the  Treasury  Department  collects   Public 
information  as  to  the  sanitary  condition  of  ports  and  places  in  the   '^^'^"■'^- 
1  From  various  bulletins  issued  by  the  United  States  Government. 


84 


READINGS   IN  AMERICAN  DEMOCRACY 


Work  of 
the  Depart- 
ment of 
Agriculture. 


Some  func- 
tions of  the 
Department 
of  the 
Interior. 


The  De- 
partment of 
Commerce 


United  States  and  foreign  countries,  including  existence  of  epidemics; 
conducts  national  quarantine  service  at  nearly  all  ports  of  the  United 
States  and  its  possessions;  has  officers  in  South  and  Central  Ameri- 
can, Asiatic,  and  European  ports  for  inspection  of  vessels  and 
emigrants  leaving  for  the  United  States. 

The  Department  of  Agriculture  extends  numerous  services  to  the 
American  people.  The  Department  issues  a  large  niunber  of  scien- 
tific and  technical  publications,  including  the  Year-book,  the  Farm- 
ers' Bulletins  series,  the  ^Monthly  Weather  Review,  and  the  Crop 
Reporter.  The  scope  of  the  Department's  work  may  be  indicated 
by  an  enumeration  of  the  chief  bureaus  and  divisions  within  it.  These 
are  the  weather  bureau,  the  office  of  farm  management,  bureau  of 
animal  industry,  bureau  of  plant  industry,  forest  service,  bureau  of 
chemistry,  bureau  of  soils,  bureau  of  entomology,  bureau  of  statistics, 
bureau  of  experiment  stations,  bureau  of  crop  estimates,  office  of 
pubhc  roads  and  rural  engineering,  bureau  of  markets,  horticultural 
board,  and  the  insecticide  and  fungicide  board. 

Several  of  the  bureaus  and  divisions  within  the  Department  of 
the  Interior  perform  valuable  services  with  respect  to  American 
industry.  The  geological  survey  investigates,  classifies  and  issues 
reports  upon  the  mineral  resources  of  the  nation.  The  bureau  of 
mines  is  concerned  with  the  mining,  quarrying,  treatment  and 
utilization  of  ores  and  other  mineral  substances.  The  patent  office 
grants  letters  patent  for  inventions,  and  registers  trade-marks.  The 
reclamation  service  is  charged  with  the  survey,  construction  and 
operation  of  the  irrigation  works  in  arid  states.  The  bureau  of 
education  collects  statistics  and  general  information  showing  the 
condition  and  progress  of  education,  including  commercial  and 
industrial   teaching   at   home   and   abroad. 

The  Department  of  Commerce  is  directly  concerned  with  American 
industry  and  commerce.  As  in  the  case  of  other  Federal  executive 
departments,  the  work  of  the  Department  of  Commerce  is  carried 
on  by  bureaus  and  boards.  The  bureau  of  the  census  prepares 
and  prints  decennial  reports  on  the  population  and  numerous 
industrial  activities  of  the  nation.  The  Department  includes  a  bureau 
of  fisheries,  a  bureau  of  navigation,  a  bureau  of  lighthouses,  and 
a  steamboat  inspection  bureau.    The  bureau  of  standards  within  the 


THE   NATURE  OF  AMERICAN  INDUSTRY  85 

Department  of  Commerce  has  the  custody  of  the  national  standards 
of  weights,  measures,  etc. 

Of  increasing  importance  is  the  work  of  the  bureau  of  foreign  and  and  its 
domestic  commerce,  within  the  Department  of  Commerce.  This  functions, 
bureau  was  created  in  191 2  by  the  consoHdation  of  the  bureau  of 
manufactures  and  the  bureau  of  statistics.  The  function  of  the 
bureau  of  foreign  and  domestic  commerce  is  the  investigation  and 
promotion  of  American  business  at  home  and  abroad.  In  order  to 
fulfill  this  function  the  bureau  employs  a  corps  of  commercial  agents, 
who  investigate  trade  conditions  at  home  and  abroad,  and  submit 
reports  resulting  from  their  observations.  The  bureau  makes  use 
of  all  available  means  to  publish  as  widely  as  possible  commercial 
information  of  interest  and  value  to  the  manufacturing  interests 
of  the  country. 

The  youngest  of  the  Federal  executive  departments  is  the  Depart-  The  De- 
ment of  Labor,  created  in  1913  by  the  separation  of  the  Department  P^^ment 
of  Commerce  and  Labor  into  a  Department  of  Commerce  and  a 
Department  of  Labor.  The  functions  of  the  latter  department  are 
steadily  increasing.  Within  this  Department  is  the  bureau  of  labor 
statistics,  which  compiles  and  publishes  useful  information  on  sub- 
jects connected  with  labor  in  the  most  general  and  comprehensive 
sense  of  that  word.  Important  functions  are  performed  by  the 
bureau  of  immigration,  the  bureau  of  naturalization,  and  the 
children's  bureau,  all  of  which  are  located  within  the  Department 
of  Labor. 


35.   Keeping  track  of  industrial  tendencies  ' 

One  of  the  outstanding  features  of  American  industry  is  its  great   Magnitude 

of  Ameri 
industry. 


size  and  complexity.    The  United  States  is  almost  as  large  as  the  whole   ?   '  '^^^^'-'^^- 


of  Europe,  yet  the  industries  of  this  country  must  often  be  considered 

as  a  unit.    Thus  one  of   the  most    important  services  in  business 

life   is  the   systematization    and  interpretation  of  industrial   data. 

Numerous  governmental  and  private  agencies  attempt   to  give  a 

bird's-eye  view  of  industrial  tendencies,  with  the  aim  of  keeping  the 

American  business  man  in  touch  with  fundamental  facts  and  signifi- 

>  From  the  National  City  Bank  of  New  York,  Monthly  Business  Letter,  Sep- 
tember, 1921. 


86 


READINGS   IN  AMERICAN   DEMOCR.\CY 


cant  developments.  The  followng  excerpts  are  from  the  Monthly 
Business  Letter,  by  means  of  which  the  National  City  Bank  of  New 
York  attempts  to  keep  track  of  industrial  tendencies: 


General 
business 
conditions. 


The  in- 
dustries. 


The  crops. 


Money. 


Monthly  Business  Letter  for  September,  ig2i 

The  general  situation  in  business  has  changed  httle,  with  business 
in  August  quiet.  ...  If  the  farmers  who  think  they  are  the  only 
sufferers  from  falling  prices  knew  the  facts  about  the  losses  of  manu- 
facturing and  trading  companies  they  would  be  less  unhappy  about 
their  own.  There  has  been  miserj^  enough  to  go  all  around.  .  .  .  Bank 
clearings  have  been  running  about  26  per  cent  below  those  of  a  year 
ago,  which  in  view  of  the  fall  of  prices  is  a  remarkably  good  showing. 
Railway  traffic  has  been  helped  by  the  big  grain  movement,  but 
car-loadings  are  about  20  per  cent  below  last  year.  .  .  . 

The  industries  are  very  quiet,  with  a  few  exceptions.  There  is 
said  to  be  a  httle  more  activity  in  iron  and  steel,  but  the  past  month 
has  seen  further  reductions  both  in  wages  and  prices.  .  .  .  The 
textile  industries  as  a  group  are  an  exception  to  the  general  situation. 
This  is  partictilarly  true  in  cotton  goods,  which  have  blossomed  out 
into  something  resembhng  a  real  boom.  .  .  . 

The  grain  crops  are  not  quite  up  to  last  year,  having  suffered 
injury  under  the  heat  and  dry  weather  of  July.  .  .  .  The  general 
situation  as  to  wheat  is  good.  Unlike  that  of  last  year,  domestic 
stocks  of  flour  are  small  and  the  millers  are  buying  grain  freely.  .  .  . 
The  corn  crop  is  about  200,000,000  bushels  under  last  year's,  but 
is  around  3,000,000,000  bushels,  and  the  carry-over  from  last  year 
is  very  large.  The  oat  crop  is  poor,  but  there  also  the  carry-over 
is  large.  .  .  .  The  situation  of  the  cotton  crop  would  signify  disaster 
in  normal  times.  The  acreage  was  reduced  about  25  per  cent,  and 
now  the  condition  of  the  crop  forecasts  a  low  yield  per  acre.  .  .  . 

The  demand  for  new  money  is  hght.  While  the  boom  v/as  on  and 
the  tendency  of  prices  was  upward,  money  was  in  constantly  increas- 
ing demand,  for  no  matter  what  profits  borrowers  made  nobody 
wanted  to  use  any  of  them  for  so  uninteresting  a  purpose  as  paying 
debts.  That  situation  has  changed.  While  the  low  prices  are  making 
money  tight,  the  demand  is  for  the  purpose  of  paying  old  debts. 
The  people  now  have  their  minds  fixed  on  getting  out  of  debt.  .  .  . 


States  the 
wealthiest 


in  the 
world. 


THE  NATURE  OF  AMERICAN  INDUSTRY  87 

36.   The  wealth  of  the  nation  ^ 

The  rich  natural  resources  of  the  nation  have  been  utilized  by  The  United 
a  virile,  energetic  people,  living  under  a  helpful  legal  system.  As 
a  result  the  United  States  is  to-day  the  wealthiest  country  in  the  nation 
world.  Though  the  exact  measurement  of  our  national  wealth  is 
perhaps  impossible,  the  estimates  of  careful  statisticians  are  gener- 
ally accepted  as  approximately  correct.  From  such  estimates  it 
appears  that  the  wealth  of  the  nation  increased,  between  1850  and 
191 2,  from  $7,000,000,000  to  $187,000,000,000.  The  character 
of  this  wealth,  and  its  amount  in  comparison  with  the  wealth  of 
other  countries,  are  shown  in  the  following  extract  of  a  special  bulletin 
of  the  Census  Bureau: 

Table  i.  —  Estimated  True  Value  of  all  Property  increase  in 

national 

wealth, 

1850-1912 


Date 

Total 

Per  Capita 

1850 

$7,135,780,228 

$308 

i860 

16,159,616,068 

514 

1870 

24,054,814,806 

624 

1880 

43,642,000,000 

870 

1890 

65,037.091,197 

1,036 

1900 

88,517,306,775 

i,i6s 

1904 

107,104,192,410 

1,318 

1912 

187,739,071,090 

1,96s 

.  .  .  These  estimates  have  been  prepared  upon  two  different 
bases  and  by  a  number  of  different  methods.  The  estimates  for  1850, 
i860,  and  1870  were  confined  to  taxable  real  property  and  the  personal 
property  of  private  individuals,  firms,  and  corporations.  They  did 
not  include  any  estimates  of  the  value  of  the  pubMc  domain  nor  of 
other  exempt  realty,  nor  of  the  value  of  the  furniture  or  equipment 
of  public  buildings  of  governments  nor  of  charitable,  reUgious,  or 
educational  institutions,  all  of  which  were  included  in  the  estimates 
for  1880,  1890,  1900,  1904,  and  191 2.  .  .  . 

Estimates  for  igi2  and  igoo.  —  Table  2,  which  follows,  affords  a 
ready  means  of  comparing  the  total  values  of  the  several  classes  of 
wealth  in  191 2  with  those  of  1900.  .  .  . 

'  From  the  United  States  Bureau  of  the  Census,  Estimated  Valuation  of  National 
Wealth,  1850-1912.    Washington,  1915;  pp.  I4~i6,  18-20. 


88 


READINGS  IN  AMERICAN  DEMOCRACY 


National 
wealth  in 
I  goo  com- 
pared with 
national 
wealth 
in  1912. 


Table  2.  —  Estimates  of  Wealth  for  1912  and  1900 

(in  millions  of  dollars) 


Form  of  Wealth 


1912 


Total $187,739 

Real  property  and  improvements  taxed 

Real  property  and  improvements  exempt 

Live  stock 

Farm  implements  and  machinery 

Manufacturing  machinery,  tools,  and  implements 

Gold  and  silver  coin  and  bullion 

Railroads  and  their  equipment 

Street  railways,  etc.: 

Street  railways 

Telegraph  systems  ^ 

Telephone  systems 

Pullman  and  cars  not  owned  by  railroads 

Shipping  and  canals 

Irrigation  enterprises 

Privately  owned  waterworks 

Privately  owned  central  electric  light  and  power  stations. . 
All  other: 

Agricultural  products 

Manufactured  products 

Imported  merchandise 

Mining  products 

Clothing  and  personal  adornments 

Furniture,  carriages,  and  kindred  property 

^  Includes  wireless  systems. 


1900 


5-517 


98,362 

46,324 

12,313 

6,212 

6,238 

3,306 

1,368 

749 

6,091 

2,541 

2,6i6 

1,677 

16,148 

9.035 

4.506 

1.576 

223 

211 

1,081 

400 

123 

98 

1,491 

537 

360 

.... 

290 

267 

2,098 

402 

5.240 

1,455 

14.693 

6,087 

826 

424 

815 

326 

4.295 

2,000 

8,463 

4,880 

Wealth  of 
the  United 
States  com- 
pared with 
the  wealth 
of  other 
countries. 


Estimated  wealth  of  different  countries.  —  Owing  to  the  insufficiency 
of  official  and  trustworthy  data  pertaining  to  the  subject,  it  has  been 
impossible  to  prepare  a  summary  of  the  aggregate  wealth  of  all  nations. 
The  followng  statement  summarizes  the  information  concerning  the 
wealth  of  the  principal  nations  as  it  has  been  assembled  by  Augus- 
tus D.  Webb,  Fellow  of  the  Royal  Statistical  Society,  and  pubHshed 
in  "The  New  Dictionary  of  Statistics"  for  191 1.  The  authority  re- 
ferred to  gives  the  values  in  pounds  sterling.  The  reduction  to 
doUars  is  at  the  rate  of  $4.8665  per  pound  sterling.  It  will  be  ob- 
served that  the  figures  for  the  United  States  are  those  compiled  by 


THE  NATURE  OF  AMERICAN   INDUSTRY 


89 


the  Bureau  of  the  Census  for  the  year  1904.  The  data  presented 
are  far  from  comparable  because  of  the  difference  in  dates  for  which 
the  estimates  were  made  and  the  character  of  the  data  included.  .  .  • 


Country 

Year 

Character  of  Data 

Amoimt 

TTniteH    Stafp*^ 

1904 
1903 

1903 
1903 
1903 
1903 
1903 
1903 

Recently 
1900 
1908 
1903 
1 90s 

1907 

Total  wealth 

$107,104,192,410 

Tlriti'sh   T^TTTnirf* 

Total  wealth 

108,279,625,000 

Total  wealth      

United  Kingdom 

Canada 

7  2.007.';  00.000 

Total  wealth              .... 

6.';6o.77  5.ooo 

Total  wealth 

5,353,150,000 

India 

Total  wealth 

14,599,500,000 

South   Afrira 

Total  wealth 

2,919,900,000 

Remainder  of  Empire . 
France 

Total  wealth 

5,839,800,000 

Private  wealth 

Total  wealth 

46,798,500,000 

1,946,600,000 

Germany 

Australia 

New  Zealand 

Total  wealth 

77,864,000,000 

Private  wealth 

Public  and  private  wealth 

Fixed  property 

4,578,903,000 
1,605,945,000 

Cape  of  Good  Hope 

428,939,49* 

Questions  on  the  foregoing  Readings 

1.  Upon  what  two  factors  does  industrial  development  depend? 

2.  Compare  the  area  of  the  United  States  in  1783  with  the  area  of 

this  country  in  1900. 

3.  Describe  briefly  the  extent  of  our  mineral  resources. 

4.  What,  according  to  Professor  Channing,  has  been  the  effect  of  the 

American  environment  upon  the  European  race? 

5.  Discuss  briefly  the  distribution  of  the  population  of  the  United 

States  in  1790. 

6.  Outline  the  extension  of  the  frontier  line  between  1800  and  i860. 

7.  In  what  sections  of  the  country  did  our  population  increase  most 

rapidly  between  1880  and  1890? 

8.  Summarize  briefly  the  increase  in  population  in  the  United  States 

between  1790  and  1910. 

9.  What  is  the  significance  of  the  fact  that  more  than  a  hundred 

million  people  now  make  their  homes  within  the  United  States? 


go  READINGS   IN  AMERICAN  DEMOCRACY 

10.  Name  some  occupations  which  the  census  bureau   lists   under  the 

general  head  of  "  manufacturing  and  mechanical  industries." 

11.  What  are  some  of  the  occupations  which  have  to  do  with  trans- 

portation? 

12.  What  occupations  does  the  term  "  professional  service  "  include? 

13.  What  was  the  total  number  of  persons  ten  years  of  age  and  over, 
J       who  in  1910  were  engaged  in  gainful  occupations  in  the  United 

States? 

14.  What  is  the  relation  of  government  to  industry? 

15.  What  are  some  of  the  functions  of  the  Department  of  Agriculture? 

16.  Outline  briefly  those  functions  of  the  Department  of  the  Interior 

which  are  closely  related  to   our  industrial  development. 

17.  What  are  the  chief  functions  of  the  Department  of  Commerce? 

18.  What  are  some  of  the  concerns  of  the  Department  of  Labor? 

19.  Describe   the  method   by  which  the  National  City  Bank  of  New 

York  keeps  track  of  industrial  tendencies  in  the  United  States. 

20.  What  factors  have  made  the  United  States  the  wealthiest  nation 

in  the  world? 

21.  Summarize  the  increase  in  our  national  wealth  between  1850  and 

1912. 

22.  Name  some  of  the  forms  of  wealth  which  are  recognized  in  the 

enumerations  of  the  Federal  Census  Bureau. 

23.  Compare  the  wealth  of  the  United  States  with  the  wealth  of  the 

British  Empire. 

24.  Compare  the  United  States  with  several  other  European  countries 

with  respect  to  national  wealth. 


CHAPTER   VLl 

WHAT  IS  MEANT  BY  PRODUCTION 

37.    Man's  part  in  production  ^ 

No  term  is  more  commonly  used  in  business  circles  than  "pro-  a  definition 
duction,"  and  yet  the  exact  meaning  and  significance  of  this  word  J^^,^[°^_ 
is  often  difficult  to  explain.  As  a  working  definition  we  may  say 
that  production  is  the  manufacture  of  objects,  or  the  performance 
of  services,  which  will  satisfy  the  wants  of  man.  The  part  which 
man  actually  takes  in  the  productive  process  has  been  described 
by  the  celebrated  Austrian  economist,  Boehm-Bawerk,  in  the  follow- 
ing language: 

To  "produce":   what  does  this  mean?    It  has  been  so  often  said  To  "pro- 
by  economists  that  the  creation  of  goods  is  not  the  bringing  into  ^^^  ^^^^ 
existence  of  materials  that  hitherto  have  not  existed  —  is  not  "  crea-   this  mean? 
tion"  in  the  true  sense  of  the  word,  —  but  only  a  fashioning  of  im- 
perishable matter  into  more  advantageous  shapes,  that  it  is  quite 
unnecessary  to  say  it  again.     More  accurate,  but  still  exposed  to 
misinterpretation,  is  the  expression  that  in  production  natural  powers 
are  the  servants  of  man,  and  are  directed  by  him  to  his  own  advantage. 
If  this  proposition  be  taken  to  mean  that  man  in  any  case  can  impose 
his  sovereign  w^ll  in  place  of  natural  laws,  can  at  will  "bully"  natural 
law  into   making  a   single  exception  at  his    bidding,  it  is  entirely 
erroneous.    Whether  the  lord  of  creation  wiU  it  or  no,  not  an  atom 
of  matter  can,  for  a  single  moment  or  by  a  hair's  breadth,  work  other- 
wise than  the  unchangeable  laws  of  nature  demand. 

Man's  role  in  production  is  much  more  modest.    It  consists  simply   Man  plays 

in   this  —  that  he,  himself  a  part  of  the  natural  world,  combines   ^  modest 

'  ^  part  in  pro- 

his  personal   powers   with   the   impersonal   powers  of  nature,  and   duction. 

>  From  Eugen  von  Boehm-Bawerk,  The  Positive  Theory  of  Capital.    The  Mac- 
millan  Co.,  1891;  pp.  12-14. 

91 


92 


READINGS   IN  AMERICAN  DEMOCRACY 


Man  moves 
things. 


Significance 
of  this 
statement. 


The  state- 
ment ex- 
plained 


and 
clarified. 


combines  them  in  such  a  way  that  under  natural  law  the  cooperation 
results  in  a  definite,  desired  material  form.  Thus,  notwithstanding 
the  interference  of  man,  the  origin  of  goods  remains  purely  a  natural 
process.  The  natural  process  is  not  disturbed  by  man,  but  completed, 
inasmuch  as,  by  apt  intervention  of  his  own  natural  powers,  he 
suppUes  a  condition  which  has  hitherto  been  wanting  to  the  origina- 
tion of  a  material  good. 

If  we  look  more  closely  at  the  way  in  which  man  assists  natural 
processes,  we  find  that  his  sole  but  ample  contribution  consists  in 
the  moving  of  things.  "Putting  objects  in  motion"  is  the  idea 
which  gives  the  key  to  all  human  production  and  its  results;  —  to 
all  man's  mastery  over  nature  and  its  powers. 

And  this  is  so  simply  because  the  powers  reside  in  the  objects. 
Now  when  man  by  his  physical  powers  — •  the  power  of  moving 
things  —  is  able  to  dictate  where  the  object  shall  be,  he  obtains  a 
control  over  the  place  at  which  a  natural  power  may  become  effective; 
and  this  means  broadly  a  control  over  the  way  and  over  the  time  in 
which  it  may  become  effective.  ... 

Of  course  a  pound  weight  acts  as  a  pound  weight  and  never  in 
any  other  way.  .  .  .  But  just  because  the  expression  of  one  and 
the  same  natural  power  always  remains  the  same,  results  that  are 
extraordinarily  different  may  be  obtained  by  getting  it  to  work  in 
different  combinations  —  just  as  by  adding  like  to  unlike  a  different 
sum  may  be  got  every  time.  And  so  our  pound  weight,  while  in  itself 
constantly  acting  with  perfect  uniformity,  will,  according  to  the 
different  surroundings  in  which  we  place  it,  sometimes  hold  together 
a  heap  of  papers  on  a  writing-table,  sometimes  indicate  the  weight 
of  another  object,  sometimes  regulate  the  pressure  of  steam  in  the 
boiler. 

Again  I  say  a  control  over  the  time  in  which  a  natural  power 
may  become  effective.  This  proposition,  also,  must  not  be  taken 
too  literally.  It  must  not  be  imagined  that  natural  powers  work 
intermittently;  that  man  can  sometimes  bring  them  to  a  stand- 
still, sometimes  set  them  working  again.  On  the  contrary,  natural 
powers  are  always  at  work;  a  natural  power  not  active  would 
be  a  contradiction  in  terms.  But  it  is  possible  that  several  powers 
may  be  so  combined  that  their  activities  may  for  a  time  mutually 


WHAT  IS  MEANT  BY  PRODUCTION  93 

balance  each  other,  and  the  resultant  be  rest.  .  .  .  This  suggests 
how  man  may  get  control  of  the  point  of  tirne  at  which  a  definite 
resultant  emerges.  It  is  only  necessary  for  him,  by  skilful  use  of 
his  power  to  move  objects,  to  provide  the  causes  of  the  desired  effect, 
all  but  one.  So  long  as  this  one  is  not  present  the  conditions  are 
unfulfilled,  and  there  cannot  be  the  desired  result.  But  when  at 
the  proper  moment  he  adds  the  last  condition,  the  movement  hitherto 
held  in  leash,  as  it  were,  is  suddenly  set  free,  and  the  desired  effect 
is  obtained  at  the  opportune  time. 

Thus  the  sportsman  moves  powder  and  lead  into  the  barrel  of  the   The  ex- 
gun;  he  shuts  the  breech;  he  raises  the  cock.    Each  of  these  things  g'^^Jg^  ^ 
has  for  long  possessed  and  expressed  its  peculiar  powers.     In  the   firing 
powder  are  present  the  molecular  powers  whose  energy  later  on  is   ^  ^^' 
to  expel  the  shot  from  the  barrel.     The  barrel  now,  as  formerly, 
exerts  its  forces  of  cohesion  and  resistance.     The  trigger  which  is 
to  let  the  cock  smash  down,  strains  and  presses  against  the  spring. 
Still  the  arrangement,  the  disposition  of  the  collective  powers,  is 
such  that  the  resultant  of  their  mutual  energies  is  rest.     But  the 
sportsman  covers  the  wild  fowl  with  the  barrel:    there  is  a  slight 
pressure  on  the  tongue,  a  little  dislocation  of  the  arrangements,  and 
the  shot  flies.  .  .  . 


38.   The  principle  of  the  division  of  labor  ^ 

Production  is  as  old  as  the  human  race  itself,  for  of  course  even   There  are 
the  earliest  peoples  had  to  put  forth  some  effort  to  satisfy  their   ^^eAods  of 
wants.     Observation  and  experience  have  shown  us  that  there  are   production. 
aU  sorts  of  methods  of  production,  some  laborious  and  inefficient, 
others  increasingly  effective.     In  an  important  sense,  production  is 
effective  in  proportion  as  it  makes  use  of  the  principle  of  the  division 
of  labor.     The  nature  and  significance  of  this  important  principle 
have   been   described    by  Adam  Smith,    the    "father"  of    modern 
economics,  in  the  following  language: 

This  division  of  labor,  from  which  so  many  advantages  are  derived, 
is  not  originally  the  effect  of  any  human  wisdom,  which  foresees 

*  From  Adam  Smith,  An  Inquiry  into  the  Nature  and  Causes  of  the  Wealth  of 
Nations.     London,  1776.     Book  i,  Chapter  11. 


94 


READINGS  IN  AMERICAN  DEMOCRACY 


Origin  of 
the  princi- 
ple of  the 
division 
of  labor. 


The 

principle 

unknown 

among 

the  lower 

animals. 


The  unique 
position 
occupied 
by  man. 


How  man 
generally 
attains 
his  ends. 


and  intends  that  general  opulence  to  which  it  gives  occasion.  It  is 
the  necessary,  though  very  slow  and  gradual,  consequence  of  a  certain 
propensity  in  human  nature  which  has  in  view  no  such  extensive 
utihty;  i.e.  the  propensity  to  truck,  barter,  and  exchange  one  thing 
for  another.  .  .  . 

•  It  is  common  to  all  men,  and  to  be  found  in  no  other  race  of  animals, 
which  seem  to  know  neither  this  nor  any  other  species  of  contracts. 
.  .  .  Nobody  ever  saw  a  dog  make  a  fair  and  dehberate  exchange 
of  one  bone  for  another  with  another  dog.  Nobody  ever  saw  one 
animal  by  its  gestures  and  natural  cries  signify  to  another,  this  is 
mine,  that  yours;  I  am  wilhng  to  give  this  for  that.  When  an  animal 
wants  to  obtain  something  either  of  a  man  or  of  another  animal, 
it  has  no  other  means  of  persuasion  but  to  gain  the  favor  of  those 
whose  service  it  requires.  A  puppy  fawns  upon  its  dam,  and  a  spaniel 
endeavors  by  a  thousand  attractions  to  engage  the  attention  of  its 
master  who  is  at  dinner,  when  it  wants  to  be  fed  by  him. 

Man  sometimes  uses  the  same  arts  with  his  brethren,  and  when 
he  has  no  other  means  of  engaging  them  to  act  according  to  his 
incHnations,  endeavors  by  every  servile  and  fawning  attention  to 
obtain  their  good  will.  He  has  not  time,  however,  to  do  this  upon 
every  occasion.  In  civUized  society  he  stands  at  all  times  in  need 
of  the  cooperation  and  assistance  of  great  multitudes,  while  his 
whole  hfe  is  scarce  sufficient  to  gain  the  friendship  of  a  few  persons. 
In  almost  every  race  of  animals  each  individual,  when  it  is  grown 
up  to  maturity,  is  entirely  independent,  and  in  its  natural  state  has 
occasion  for  the  assistance  of  no  other  living  creature.  But  man 
has  almost  constant  occasion  for  the  help  of  his  brethren,  and  it 
is  in  vain  for  him  to  expect  it  from  their  benevolence  only.  He 
will  be  more  likely  to  prevail  if  he  can  interest  their  self-love  in  his 
favor,  and  show  them  that  it  is  for  their  own  advantage  to  do  for  him 
what  he  requires  of  them. 

Whoever  offers  to  another  a  bargain  of  any  kind,  proposes  to  do 
this:  Give  me  that  which  I  want,  and  you  shall  have  this  which  you 
want,  is  the  meaning  of  every  such  offer;  and  it  is  in  this  manner 
that  we  obtain  from  one  another  the  far  greater  part  of  those  good 
offices  which  we  stand  in  need  of.  It  is  not  from  the  benevolence 
of  the  butcher,  the  brewer,  or  the  baker,  that  we  expect  our  dinner, 


WHAT  IS   MEANT  BY   PRODUCTION  95 

but  from  their  regard  to  their  own  interest.  We  address  ourselves, 
not  to  their  humanity  but  to  their  self-love,  and  never  talk  to  them 
of  our  own  necessities,  but  of  their  advantages.  .  .  . 

As  it  is  by  treaty,  by  barter,  and  by  purchase,  that  we  obtain  from   How  the 
one  another  the  greater  part  of  those  mutual  good  offices  which  we   ^J^j^l^^j. 
stand  in  need  of,  so  it  is  this  same  trucking  disposition  which  originally   arises: 
gives  occasion  to  the  division  of  labor.    In  a  tribe  of  hunters  or  shep-   ^^  example, 
herds  a  particular  person  makes  bows  and  arrows,  for  example,  with 
more  readiness  and  dexterity  than  any  other.     He  frequently  ex- 
changes them  for  cattle  or  for  venison  with  his  companions;    and 
he  finds  at  last  that  he  can  in  this  manner  get  more  cattle  and  venison, 
than  if  he  himself  went  to  the  field  to  catch  them.     From  a  regard 
to  his  own  interest,  therefore,  the  making  of  bows  and  arrows  grows 
to  be  his  chief  business,  and  he  becomes  a  sort  of  armourer. 

Another  excels  in  making  the  frames  and  covers  of  their  httle  Further 
huts  or  movable  houses.  He  is  accustomed  to  be  of  use  in  this  way  examples, 
to  his  neighbors,  who  reward  him  in  the  same  maimer,  with  cattle 
and  venison,  till  at  last  he  finds  it  to  his  interest  to  dedicate  himself 
entirely  to  this  employment,  and  to  become  a  sort  of  house-carpenter. 
In  the  same  manner  a  third  becomes  a  smith  or  a  brazier;  a  fourth 
a  tanner  or  dresser  of  hides  or  skins.  .  .  .  And  thus  the  certainty 
of  being  able  to  exchange  all  that  surplus  part  of  the  produce  of  his 
own  labor,  (which  is  over  and  above  his  own  consumption),  for  such 
parts  of  the  produce  of  other  men's  labor  as  he  may  have  occasion  for, 
encourages  every  man  to  cultivate  and  bring  to  perfection  whatever 
talent  or  genius  he  may  possess  for  that  particular  species  of 
business.  .  .  . 


39.   The  productive  methods  of  savages  ^ 

CiviUzation  is  so  vast  and  complicated  a  structure  that  it  is  dan-   The  division 


of  labor  in 
its  relation 


gerous  to  attribute  its  development  to  any  one  principle,  or  even 
to  any  one  group  of  principles.     Nevertheless,  the  economist  be-   to  civiliza- 
Heves  that  in  an  important  sense  civilization  depends  upon  industrial   ^'°^ 
efficiency,  and,  further,  that  industrial  efficiency  depends  primarily 

>  From  Frederick  Starr,  Some  First  Steps  in  Human  Progress.     Chautauqua 
Assembly,  Chicago,  igoi;  pp.  63-67. 


96 


READINGS  IN  AMERICAN  DEMOCRACY 


Some 
peoples 
have  no 
agriculture. 


The  work 
of  primitive 
woman. 


The 

probable 
origin  of 
agriculture. 


Agriculture 
in  aborig- 
inal 
America. 


upon  the  division  of  labor.  It  is  true,  as  Adam  Smith  has  pointed 
out,  that  the  savage  makes  some  use  of  the  principle  of  the  division 
of  labor.  And  yet  we  shall  see,  by  comparing  the  remaining  selec- 
tions in  this  chapter,  that  the  division  of  labor  among  savages  is 
relatively  simple  and  inefficient.  The  primitive  methods  of  pro- 
duction among  some  primitive  peoples  are  described  by  Dr.  Starr 
in  the  following  selection: 

There  is  absolutely  no  agriculture  among  the  Australians,  who 
do  not  even  lay  by  a  stock  of  the  poor  foods  which  niggard  nature 
gives  them  in  that  backward  continent,  but  eat  up  all  they  find  in 
one  place  and  then  migrate.  Among  the  Bushmen  and  the  Hottentots, 
also,  there  is  no  cultivation  of  the  soil ;  with  digging  sticks  weighted 
with  heavy  stone  rings  they  dig  up  roots  and  tubers,  but  they  plant 
no  seeds  that  new  roots  and  tubers  may  grow. 

There  can  be  no  question  that  it  was  the  woman,  left  at  home  to 
tend  the  fire,  who  was  the  first  agriculturist.  .  .  .  While  the  man 
was  hunting  for  game  or  fighting  against  his  fellows,  the  woman  by 
the  fire,  —  trying  to  piece  out  the  scanty  fare  with  roots  and  stems, 
barks  and  leaves,  which  she  could  find  about  the  home,  —  began  the 
various  peaceful  industries  of  Hfe.  .  .  . 

In  wanderings  for  roots  and  fruits  she  came  upon  some  plant 
particularly  noticed  on  account  of  .its  good  promise;  for  fear  some 
careless  hunter  might  trample  it  under  foot,  or  that  some  animal 
might  steal  or  harm  the  fruit  before  it  ripened,  it  would  be  protected 
by  a  few  sticks  set  about  it.  That  it  might  have  a  better  chance  to 
grow  and  bear  its  fruit  the  plants  around  it  which  prevented  it  getting 
ftill  share  of  air  and  light  would  be  cut  away  or  plucked  out.  This 
was  the  beginning  of  the  care  of  plants.  Again,  some  young  and 
sprouting  plant  distant  from  the  fireside  would  be  transplanted  in 
order  that  it  might  be  more  accessible  in  time  of  need.  Still  later 
would  come  the  idea  of  saving  seed  for  planting,  and  with  this  idea 
the  clearing  of  the  soil  and  true  agriculture.  .  .  . 

Many  people  whom  we  are  in  the  habit  of  considering  mere  wild 
hunters  had  some  agriculture;  there  were  few,  if  any,  tribes  in  North 
America  east  of  the  Rocky  Mountains  and  south  of  the  limit  of 
almost  continuous  winter  who  did  not  raise  some  crops.  All  early 
travellers  tell  of  the  gardens  of  the  Iroquois  and  Algonkin  tribes 


WHAT  IS  MEANT  BY  PRODUCTION  97 

along  our  eastern  seaboard,  and  it  is  well  known  that  the  settlers 
of  New  England  must  have  starved  if  they  had  not  been  helped  from 
the  suppHes  of  the  Indians.  Among  the  southern  tribes,  such  as 
the  Creeks,  agriculture  was  still  more  developed.  In  Mexico,  Central 
America,  and  the  Greater  Antilles  abundant  crops  were  raised.  ,  .  . 

The  first  and  simplest  agricultural  tool  was  a  sharpened  stick  for   A  simple 
digging  up  roots.  .  .  .  This  first  simple  tool  is  used  not  only  as  a     *^° ' 
digging  stick,  but  also  for  driUing  holes  in  which  to  plant  seeds; 
such  is  its  use  in  Nubia,  Yucatan,  the  Antilles,  Sweden,  and  many 
other   places. 

Corn-planting  in  Central  America  was  and  is  a  very  simple  process;   Planting 
a  man  going  first  with  his  driUing  stick,  makes  a  hole  in  the  ground; 
his  wife  following  after  drops  in  a  few  seeds  of  maize;   little  people, 
following  after  these,  with  their  feet  cover  the  grain  thus  sown  with 
the  earth  which  was  loosened  by  the  stick.  .  .  . 

The  first  threshing  must  have  been  a  very  simple  thing.  The  Harvesting 
Indian  women  on  the  Illinois  River,  at  an  early  day,  simply  bent 
the  stalks  of  wild  rice  over  the  edge  of  their  canoe  and  with  flat 
paddles  beat  the  heads  until  the  seeds  fell  from  them  into  the  boat. 
Fire  no  doubt  was  used  by  [the]  women  of  many  primitive  folk  to 
get  the  useless  husk  off  from  the  grain  and  seeds.  After  animals 
were  tamed  and  reduced  to  use  they  would  be  brought  into  serv- 
ice; thus  among  the  Pueblo  Indians  in  the  Southwest,  threshing  is 
performed  as  follows: 

A  circular  area  some  yards  across  is  cleared  and  smoothed  and   Threshing 
covered  with  a  firm  floor  of  beaten  or  hard-trodden  clay.     This   p^gi^io 
floor  is  enclosed  by  a  circle  of  poles  set  in  the  ground,  and  connected   Indians, 
by  means  of  ropes  or  cords.     The  grain  to  be  threshed  is  cut  and 
brought   in  from  the  fields;    it  is  heaped  up,  upon  the   threshing 
floor;  a  drove  of  ponies  is  turned  into  the  enclosure  and  kept  running 
around  and  around  by  a  man  who  stands  in  the  center  with  a  whip. 
Soon  the  motion  of  the  many  hoofs  upon  the  straw  shakes  the  grain 
from  the  husks.  .  .  .  Such  is  one  form  of  primitive  threshing.  .  .  . 


98 


READINGS  IN  AMERICAN  DEMOCRACY 


The 

industrial 

efficiency 

of  civilized 

man  is  of 

recent 

growth. 


The  home 
stage  in 
boot  and 
shoe  manu- 
facture. 


The  handi- 
craft stage. 


40.   Division  of  labor  in  colonial  manufactures  ^ 

If  we  were  to  contrast  the  productive  methods  of  savages  with  the 
methods  employed  in  some  of  the  largest  and  most  efficient  factories 
of  modern  times,  it  would  appear  that  there  is  no  comparison  between 
the  productivity  of  the  savage  and  that  of  civUized  man.  And  yet 
the  highly  effective  methods  of  modern  industry  are  only  two  or 
three  centuries  old.  In  some  of  the  manufactures  of  colonial  days, 
for  example,  there  was  not  a  sufficient  application  of  the  principle 
of  the  division  of  labor,  and  certainly  not  enough  in  the  way  of  indus- 
trial efficiency,  to  warrant  a  contempt  for  the  methods  of  the  savage. 
The  relatively  unproductive  methods  of  colonial  times  may  be 
illustrated  by  the  boot  and  shoe  industry  in  early  Massachusetts. 
The  early  stages  of  this  industry  are  described  by  Miss  Hazard  as 
follows: 

During  the  home  stage  in  the  shoe  industry  in  Massachusetts 
shoes  were  made  only  for  human  consumption.  There  was  no  market 
for  them.  .  .  .  The  farmer  and  his  older  sons  made  up  in  winter 
around  the  kitchen  hearth  the  year's  supply  of  boots  and  shoes  for 
the  family,  out  of  leather  raised  and  tanned  on  his  own  or  a  neighbor's 
farm.  .  .  .  Each  boy  in  turn  stood  on  a  piece  of  paper  or  on  the  bare 
floor,  and  had  the  length  of  his  foot  roughly  marked  off  with  chalk 
or  charcoal.  The  shoemaker  selected  from  among  his  meagre  supply 
of  lasts  the  one  which  came  "somewhere  near"  that  measure.  There 
were  only  two  styles,  low  shoes  or  brogans,  and  high  boots. 

The  second  or  handicraft  stage  came  in  the  Massachusetts  boot 

and  shoe  industry  with  easier  times  in  each  village  in  turn.    It  had 

been  foreshadowed  by  the  itinerant  cobbler.   Now  the  real  shoemaker 

could  stay  in  his  own  shop,  working  on  his  own  or  his  customer's 

supply  of  leather.     He  dealt  directly  with  his   market  in  the  first 

phase  of  this  stage  and  made  only  ordered  or  "bespoke"  work.  .  .  . 

The  number  of  master  workmen  in  any  one  town  was  comparatively 

small,  of  course,  in  this  "direct  market"  or  "town  economy"  period, 

dependent  as  they  would  be  upon  the  possible  orders  of  a  single 

community.     Their  journeymen  went   to   the  frontier   settlements 

1  From  Blanche  E.  Hazard,  "The  Organization  of  the  Boot  and  Shoe  Industry 
in  Massachusetts  before  1875."  Quarterly  Journal  of  Economics,  Vol.  xxvn.  Feb- 
ruary, igi3;  pp.  239-244. 


WHAT  IS   MEANT   BY  PRODUCTION  99 

to  set  up  in  the  craft  for  themselves,  leaving  the  supply  of  apprentices 
to  fill  their  places  in  the  future.  .  .  , 

There  were  times  when  the  more  advanced  apprentices  or  even  The  manu- 
the  journeymen  spoiled  a  pair  of  shoes  started  for  a  definite  customer,    '^.cture  of 

cxtr^     or 

and  these  remained  on  the  master's  hands  to  be  disposed  of.  Then  "sale" 
there  were  slack  times  when  the  apprentices  might  fairly  be  expected  ^"^o^s- 
to  "eat  their  own  heads  off,"  to  the  shoemaker's  loss.  .  In  such  a 
case  the  craftsman  ventured  to  make  up  the  stock  on  hand,  to  employ 
this  otherwise  wasting  labor,  and  then  tried  to  dispose  of  the  shoes 
in  the  village  grocery  store.  Since  the  market  was  uncertain  and 
slow  for  this  extra  work,  both  stock  and  labor  may  frequently  have 
been  below  the  standard  used  in  the  custom-made  shoes.  .  .  . 

In  case  the  shoemakers  lived  in  villages  too  far  from  Boston  to   The  case  of 
attract  customers,  but  near  enough  to  send  in  their  surplus  product,    S^^*^^, 
their  attention  to  sale  work  would  steadily  grow.    A  seemingly  typical   Weymouth, 
case,  with  all  its  local  flavor,  can  be  followed  in  detail  in  the  bills, 
letters,   account    books,   and    oral    traditions   of    Quincy    Reed   of 
Weymouth.    He  expected  to  be  a  shoemaker  just  as  his  great-grand- 
father WiUiam,  who  landed  in  Weymouth  in  1635,  and  his  grand- 
father and  father  had  been.     In  1809  the  father  was  a  master  with 
custom  work  and  probably  some  sale  work  for  local  consumption. 
As  Quincy  tells  the  story: 

"My  brother  Harvey  began  it  by  taking  chickens  to  Boston.   His  story. 
He  had  a  pair  of  chaise  wheels  in  the  barn,  and  putting  on  a  top 
piece,  loaded  her  up  and  drove  to  town.    He  hung  some  shoes  on  the 
chaise   and   we   sold   them   in  Boston.     All   the   shoes  .  .  .  before 
we  began  business,  were  carried  into  Boston  in  saddle  bags.  .  .  . 

"We  hired  a  store  of  Uriah  Cotting  at  133  Broad  Street  and  fitted 
it  up.  Then  I  used  to  keep  a  chest  of  shoes  in  a  cellar  near  Dock 
Square  and  on  Wednesday  and  Saturday  would  bring  out  the  chest 
and  sell.  I  got  $15  and  $20  a  day  by  it  in  1809.  I  was  sixteen  and 
my  brother  was  eighteen  years  old  then.  We  moved  into  the  Broad 
Street  store  with  two  bushels  of  shoes.  I  used  to  cut  out  what  would 
promise  to  be  $100  worth  a  day.  We  couldn't  have  them  made 
[as  fast  as  that],  but  I  could  cut  them.  One  day  I  cut  350  pair  of 
boot  fronts  and  tended  store  besides.  Most  of  the  shoes  were  made 
by  people  in  South  Weymouth.     We  had  nearly  every  man  there 


lOO 


READINGS  IN  AMERICAN   DEMOCRACY 


working  for  us  before  long.    Used  to  bring  out  the  sole  leather  swung 
across  the  horse's  back  in  those  days."  .  .  . 


The 

Industrial 
Revolution 
in  England. 


The  mill 
at  Beverly, 
Massachu- 
setts. 


Samuel 
Slater 
comes  to 
America 


41.    Slater  introduces  power  machinery  into  America  ^ 

The  foregoing  selection  traces,  to  a  slight  extent,  the  increasing 
efficiency  of  individuals  engaged  in  the  boot  and  shoe  industry. 
While  this  type  of  development  was  going  on  in  this  and  a  number 
of  other  colonial  industries,  the  invention  in  England  of  a  series  of 
remarkable  machines  was  permitting  the  manufacturers  of  that 
country  to  make  greater  and  greater  use  of  natural  power.  The 
Industrial  Revolution,  initiated  in  England  after  1750,  gave  that 
country  a  decided  advantage  in  the  manufacture  of  textiles  and  other 
products.  This  naturally  increased  the  desire  of  American  manu- 
facturers to  set  up  machines  similar  to  those  in  use  in  England.  The 
following  extract  teUs,  briefly,  the  story  of  how  power  machinery 
was  introduced  into  the  United   States  from  England: 

It  was  at  the  period  so  prolific  in  inventions,  and  when  the  use 
of  cotton  had  so  increased  in  England,  that  the  manufacture  was 
commenced  in  the  United  States.  The  first  [^textile]  mill  was  at 
Beverly,  Mass.  It  had  a  capital  of  [^aboutj  $450,000,  and  was  or- 
ganized in  1787,  for  the  manufacture  of  corduroys  and  bed  ticks.  .  .  . 
The  machines  were  very  rude,  inasmuch  as  the  new  inventions  in 
England    were   then   unknown   here. 

Samuel  Slater  was  an  apprentice  to  Jedediah  Strutt,  the  partner 
of  Arkwright.  He  served  his  time,  and  when  of  age  departed  for 
America,  where  he  arrived  in  1789.  In  the  following  year,  he  entered 
into  partnership  with  Almey  and  Brown  to  start  a  factory  in  Paw- 
tucket  [Rhode  Island]. 

Here,  then,  were  put  up,  in  the  best  manner,  the  whole  series  of 
machines  patented  and  used  by  Arkwright  for  spinning  cotton.  There 
had  been  previous  attempts  at  the  spinning  of  cotton  by  water  power, 
and  some  rude  machines  were  in  existence  for  spinning  the  rolls  pre- 
pared by  hand,  in  private  families;  but  the  machines  that  had  been 
invented  in  England  were  entirely  unknown  here  until  put  up  by  Slater. 


*  From  One  Hundred  Years'  Progress  of  the  United   States. 
1872;  pp.  277-281. 


Hartford,  Conn., 


WHAT  IS  MEANT  BY  PPCDUCTION     , ,     , .     :TOJ 

Those  machines  were  so  perfect  that,  although  put  up  in  1790,    and  sets  up 
they  continued  to  be  used  forty  years,  up  to  1830,  when  they  formed   Po^'f^^ 
part  of  an  estabhshment  of  two  thousand  spindles,  which  still  exists   at  Paw- 
in  Pawtucket  under  the  name  of  the  "old  mill."     Slater's  business   bucket, 
was  prosperous,  and  he  amassed  a  large  fortune.    He  died  in  1834.  .  .  . 

It  is  to  be  remarked  that  his  business  was  confined  to  the  spinning 
of  cotton.  This  business,  of  course,  spread  as  soon  as  it  was  found 
to  be  profitable.  ...  It  will  be  observed  that  Mr.  J.  Slater  got  his 
mill  into  operation  at  the  same  period  that  the  Federal  government 
was  organized  under  the  new  Constitution,  a  most  auspicious  event. 
The  manufacture  did  not  fail  to  attract  the  attention  of  the  new  gov- 
ernment, and  Alexander  Hamilton,  Secretary  of  the  Treasury,  in 
his   famous   report   of    1791,    remarks: 

"The  manufacture  of  cotton  goods  not  long  since  established  at   Alexander 

Beverly,  in  Massachusetts,  and  at  Providence,  Rhode  Island,  seems   Hamilton 
■"  comments 

to  have  overcome  the  first  obstacles  to  success;  producing  corduroys,    upon  the 
velverets,  fustians,  jeans,   and  other  similar  articles,   of  a  quality   signmcance 
which  will  bear  a  comparison  with  the  like  articles  brought  from   work. 
Manchester.     The  []milO  at  Providence  has  the  merit  of  being  the 
first  in  introducing  into  the  United  States  the  celebrated  cotton  mill, 
which  not  only  furnishes  material  for  the  factory  itself,  but  for  the 
supply  of   private   families   for   household   manufacture."  .  .  . 

It  may  be  remarked  that  down  to  1828  the  exportation  of  machines   England's 
of  all  kinds  .  .  .  was  strictly  prohibited  in  England,  for  fear  other   f^^'^'^j'^.i^ 
nations  should  benefit  by  English  mechanical  genius,  of  which  they   exportation 
supposedly    had    a    monopoly;  ...  Mr.    Slater,    the    "father"    of   °^  machines. 
American  cotton  manufactures,  was  so  closely  watched  at  the  English 
custom-house,  that  he  could  not  smuggle  over  a  drawing  or  pattern. 
He  had,  however,  acquired  a  full  knowledge  of  the  Arkwright  principle 
of  spinning,  and  from  recollection,  and  with  his  own  hands,  made 
three  cards  and  twenty-two  spindles,  and  put  them  in  motion  in  the 
building  of  a  clothier,  by  the  water-wheel  of  an  old  fulliiig-mill.  .  .  . 


1Q2 


READINGS  IN  AMERICAN   DEMOCRACY 


Extent  of 
the  division 
of  labor  in 
American 
industry. 


Importance 
of  the 
cattle 
butcher. 


Mmute 
division  of 
labor  in 
the  butchers' 
gang. 


42.   An  example  of  the  complex  division  of  labor  ^ 

In  an  important  sense,  the  division  of  labor  in  modern  industry 
has  developed  along  two  lines:  In  the  first  place,  men  have  in  many 
cases  divided  up  their  labor  so  minutely  that  each  man  carries  on 
by  hand  a  highly  speciahzed  type  of  work.  In  the  second  place,  cer- 
tain complex  activities  have  been  broken  up  into  operations  so 
simple  that  they  need  no  longer  be  done  by  hand,  but  can  be  per- 
formed by  machinery.  At  the  present  time,  a  considerable  number 
of  American  industries  exhibit  a  minute  and  highly  complex  division 
of  labor,  both  among  hand  workers,  and  among  machines  operated 
by  individuals.  The  stock-slaughtering  business  in  Chicago,  111., 
is  an  excellent  example  of  the  complex  division  of  labor  among  per- 
sons working  primarily  by  hand.  The  following  description  is  by 
Professor  Commons: 

The  cattle  butchers'  local  unions  number  5,500  of  the  50,000  mem- 
bers, and  of  these  about  2,000  are  the  most  highly  skilled  of  aU  the 
workmen  in  the  slaughtering  and  packing  industry.  Their  importance 
has  brought  to  them  the  title  of  "butcher  aristocracy."  Their 
strategic  position  is  explained  by  the  character  and  expensiveness 
of  the  material  they  work  upon.  The  cattle  butcher  can  do  more 
damage  than  any  other  workman;  for  a  cut  in  the  hide  depreciates 
its  value  70  cents,  and  a  spotted  or  rough  carcass  will  be  the  last 
to  sell,  with  the  risk  of  the  rapid  depreciation  of  a  perishable  product. 

The  sheep  butcher  merely  "puUs  off"  three-quarters  of  the  hide, 
but'  the  cattle  butcher  can  pull  off  only  2  per  cent.  The  entire  hide 
must  be  neatly  cut  off,  leaving  the  "fell,"  or  mucous  covering,  intact 
on  the  carcass,  to  give  it  a  good  appearance.  The  "splitter,"  too, 
must  make  a  neat  and  smooth  cut  straight  down  the  middle  of  the 
ivory-like  "fins"  of  the  backbone,  or  the  wholesaler  cannot  quickly 
dispose  of  the  piece. 

Yet,  notwithstanding  the  high  skill  required,  the  proportion  of 

skilled  workmen  in  the  butchers'  gang  is  very  small,  owing  to  a 

minute  division  of  labor.    It  would  be  difficult  to  find  another  industry 

where  division  of  labor  has  been  so  ingeniously  and  microscopically 

worked  out.    The  animal  has  been  surveyed  and  laid  off  hke  a  map; 

*  From  John  R.  Commons,  "Labor  Conditions  in  Meat  Packing  and  the  Recent 
Strike."     Quarterly  Journal  of  Economics,  Vol.  Xix,  November,  1904;  pp.  3-6. 


WHAT  IS   MEANT   BY  PRODUCTION  103 

and  the  men  have  been  classified  in  over  thirty  specialties  and  twenty 
rates  of  pay,  from  16  cents  to  50  cents  an  hour.  The  50-cent  man 
is  restricted  to  using  the  knife  on  the  most  dehcate  parts  of  the 
hide  (floorman)  or  to  using  the  axe  in  splitting  the  backbone  (sphtter) ; 
and,  wherever  a  less  skilled  man  can  be  slipped  in  at  18  cents,  i8| 
cents,  20  cents,  21  cents,  22I  cents,  24  cents,  25  cents,  and  so  on, 
a  place  is  made  for  him,  and  an  occupation  mapped  out. 

In  working  on  the  hide  alone  there  are  nine  positions,  at  eight    Skill 
different  rates  of  pay.    A  20-cent  man  pulls  off  the  tail,  a  2  2|-cent   ^^^g^^'l^g^ 
man  pounds  off  another  part  where  the  hide  separates  readily,  and   anatomy, 
the  knife  of  the  40-cent  man  cuts  a  different  texture  and  has  a 
different  "feel"  from  that  of  the  50-cent  man.     Skill  has  become 
specialized  to  fit  the  anatomy.    In  this  way,  in  a  gang  of  230  men, 
killing  105  cattle  an  hour,  there  are  but  1 1  men  paid  50  cents  an  hour, 
3  men  paid  45  cents,  while  the  number  getting  20  cents  and  over  is 
86,  and  the  number  getting  under  20  cents  is  144.  .  .  . 

The  division  of  labor  grew  with  the  industry,  following  the  intro-   How  the 
duction  of  the  refrigerator  car  and  the  marketing  of  dressed  beef,   JYa^°'J 
in  the  decade  of  the  seventies.    Before  the  market  was  wdened  by   grew  with 
these  revolutionizing  changes,  the  killing  gangs  were  small,  since   ^^^^^^' 
only  the  local  demands  were  supplied.     But,  when  the  number  of 
cattle  to  be  killed  each  day  increased  to  a  thousand  or  more,  an 
increasing  gang  or  crew  of  men  was  put  together;   and  the  best  men 
were  kept  at  the  most  exacting  work. 

At.  what  point  the  greatest  economy  is  reached  was  discovered  by  How  the 
experiment  and  by  comparison  of  one  house  with  another.     Each   g°g^*gg° 
firm  has  accurate  knowledge  of  the  labor  force  and  the  output  of   economy  is 
every  other  house,  and  in  this  way  improvement  becomes  general       covere  . 
and  each  superintendent  is  keyed  up.    Taking  a  crew  of  230  butchers, 
helpers,  and  laborers,  handling  1,050  cattle  a  day  under  the  union 
regulations  of  output,  the  time  required  for  each  bullock  is  equivalent 
to  131  minutes  for  one  man,  from  the  pen  to  the  cooler,  the  hide 
cellar,  and  all  the  other  departments  to  which  the  animal  is  distrib- 
uted.   But  this  is  made  up  of  6.4  minutes  for  the  50-cent  man,  ij 
minutes  for  the  45-cent  man,  and  so  on;   and  the  average  wage  per 
hour  for  the  gang  would  not  exceed  21  cents,  making  the  entire 
labor  cost  about  46  cents  per  bullock.  .  .  . 


104  READINGS  IN  AMERICAN  DEMOCRACY 

Questions  on  the  foregoing  Readings 

1.  Define  production. 

2.  Why  does  Boehm-Bawerli  say  that  man's  role  in  production  is 

modest? 

3.  What  is  the  relation  of  production  to  man's  power  to  move  things? 

4.  Illustrate  man's  direction  of  natural  forces  with  reference  to  the 

firing  of  a  gun. 

5.  Upon  what  does  the  effectiveness  of  production  depend? 

6.  Of  what,   according  to  Adam  Smith,     is  the  division  of  labor  a 

consequence? 

7.  Does    the    division    of    labor    exist    among    the    lower    animals? 

Explain. 

8.  What  does  Adam  Smith  mean  by  saying  that  we  gain  most  of  the 

things  of  which  we  stand  in  need,  by  addressing  ourselves  to 
the  self-interest  of  other  people? 
Q.    What,  according  to  the  economist,  is  the  relation  of  the  division 
of  labor  to  civilization? 

10.  Name  some  peoples  who  do  not  cultivate  the  soil. 

11.  Who,  according  to  Dr.  Starr,  was  the  first  agriculturist?    Why? 

12.  What  was  probably  the  first  and  simplest  tool  used  in  primitive 

agriculture? 

13.  Describe  the  process  of  threshing  grain,  as  practiced  among  the 

Pueblo  Indians  of  southwestern  United  States. 

14.  What  is  the  approximate  age  of  the  highly  effective  methods  of 

modern  production? 

15.  Describe   briefly    the    nature    of   boot   and   shoe    manufacture   in 

Massachusetts  during  the  home  stage  of  manufacture. 

16.  What  stage  followed  the  home  stage? 

17.  Where  was  the  first  textile  mill  in  Massachusetts  established? 

18.  Who  was  Samuel  Slater? 

19.  Describe  the  work  of  Slater  in  the  United  States. 

20.  What  was  England's  attitude  toward   the  exportation  of  machines 

during  the  early  part  of  the  nineteenth  century? 

21.  Along  what  two  hnes  has  the  division  of  labor  progressed? 

22.  What  is  meant  by  the  "  butcher    ristocracy  "? 

23.  Why  is  there  a  small  proportion  of  skilled  workmen  in  a  butchers' 

gang? 

24.  Explain    the    statement    that   in    the    packing   industry   skill   has 

been  specialized  to  fit  the  anatomy  of  the  animal. 

25.  How  do    packing  firms  discover   the  point  at   which   their  labor 

force  can  be  utilized  with  greatest  economy? 


CHAPTER   VIII 

EXCHANGING   THE   PRODUCTS   OF   INDUSTRY 
43.   Relation  of  division  of  labor  to  the  market  ^ 

The  result  of  the  complex  division  of  labor  is  that  the  output  The  dmsion 

of  the  group  or  community  is  greatly  increased.    If  one  man  working  °^  '^^^"^  ^' 

alone  were  to  perform  all  of  the  operations  of  butchering  a  bullock,  productivity 

the  process  might  take  him  all  day.    But,  as  we  have  seen  in  the  ^^  *^^ 

group, 
last  chapter,  butchering  in  a  Chicago  packing  plant  is  carried  on  by 

a  number  of  specialists  who,  by  means  of  dividing  up  their  labor 

minutely,  are  enabled  to  butcher  an  average  of  more  than  four  buUocks 

per  day  per  man. 

It  is  clear  that  the  division  of  labor  increases  the  amount  of  product   but  is 

per  man,  yet  it  should  be  remembered  that  it  is  not  economical  to   '^'^^o  by 
^  '  J  ^       the  extent 

turn  out  this  increased  product  unless  there  are  purchasers  for  it.   of  the 

In  other  words,  there  must  be  an  adequate  market  before  the  com-  "^^^'^^t, 

plex  division  of  labor  is  practicable.     In  the  following  selection, 

Adam  Smith  explains  the  statement  that  the  division  of  labor  is 

limited  by  the  extent  of  the  market: 

As  it  is  the  power  of  exchanging  that  gives  occasion  to  the  division   as  Adam 

of  labor,  so  the  extent  of  this  division  must  always  be  Hmited  by   S"}i^" 

■^  points  out. 

the  extent  of  the  market.  When  the  market  is  very  small,  no  person 
can  have  any  encouragement  to  dedicate  himself  entirely  to  one 
employment,  for  want  of  the  power  to  exchange  all  that  surplus 
part  of  the  produce  of  his  own  labor,  (which  is  over  and  above  his 
own  consumption),  for  such  parts  of  the  produce  of  other  men's 
labor  as  he  has  occasion  for. 

There  are  some  sorts  of  industry,  even  of  the  lowest  kind,  which 
can  be  carried  on  nowhere  but  in  a  great  town.  A  porter,  for  example, 
can  find  employment  and  subsistence  in  no  other  place.    A  vUlage 

'  From  Adam  Smith,  An  Inquiry  into  the  Nature  aiid  Causes  of  the  Wealth  of 
Nations.    London,  1776.    Book  i,  Chapter  in. 

105 


io6 


READINGS  IN  AMERICAN  DEMOCRACY 


Some  in- 
dustries can 
be  carried 
on  only  in 
a  large 
town  or 
city. 


Relation  of 
water  trans- 
portation to 
the  division 
of  labor 
and 


commerce. 


Character 
of  the 
market  in 
the  inland 
parts  of  the 
country. 


is  by  much  too  narrow  a  sphere  for  him;  even  an  ordinary  market 
town  is  scarce  large  enough  to  afford  him  constant  occupation.  In 
the  lone  houses  and  very  small  villages  which  are  scattered  about  in 
so  desert  a  country  as  the  Highlands  of  Scotland,  every  farmer  must 
be  butcher,  baker  and  brewer  for  his  own  family.  In  such  situations 
we  can  scarce  expect  to  find  even  a  smith,  a  carpenter,  or  a  mason, 
within  less  than  twenty  miles  of  another  of  the  same  trade.  .  .  . 
It  is  impossible  there  should  be  such  a  trade  as  even  that  of  a  nailer 
in  the  remote  and  inland  parts  of  the  Highlands  of  Scotland.  Such 
a  workman  at  the  rate  of  a  thousand  nails  a  day,  and  three  hundred 
working  days  in  the  year,  will  make  three  hundred  thousand  nails 
in  the  year.  But  in  such  a  situation  it  would  be  impossible  to  dis- 
pose of  one  thousand,  that  is,  of  one  day's  work  in  the  year. 

As  by  means  of  water-carriage  a  more  extensive  market  is  opened 
to  every  sort  of  industry  than  what  land-carriage  alone  can  afford 
it,  so  it  is  upon  the  sea-coast,  and  along  the  banks  of  navigable  rivers, 
that  industry  of  every  kind  naturally  begins  to  subdivide  and  im- 
prove itself,  and  it  is  frequently  not  till  a  long  time  after  that  those 
improvements  extend  themselves  to  the  inland  parts  of  the  country. 
A  broad-wheeled  wagon,  attended  by  two  men,  and  drawn  by  eight 
horses,  in  about  six  weeks'  time  carries  and  brings  back  between 
London  and  Edinburgh  near  four  ton  weight  of  goods.  In  about 
the  same  time  a  ship  navigated  by  four  or  eight  men,  and  sailing 
between  the  ports  of  London  and  Leith,  frequently  carries  and  brings 
back  two  hundred  ton  weight  of  goods.  .  .  . 

Were  there  no  other  communication  between  .  .  .  [London  and 
Edinburgh],  therefore,  but  by  land- carriage,  as  no  goods  could  be 
transported  from  the  one  to  the  other,  except  such  whose  price 
was  very  considerable  in  proportion  to  their  weight,  they  could 
carry  on  only  a  small  part  of  that  commerce  which  at  present  sub- 
sists between  them.  .  .  . 

Since  such,  therefore,  are  the  advantages  of  water-carriage,  it  is 
natural  that  the  first  improvements  of  art  and  industry  should  be 
made  where  this  conveniency  opens  the  whole  world  for  a  market 
to  the  produce  of  every  sort  of  labor,  and  that  they  should  always 
be  much  later  in  extending  themselves  into  the  inland  parts  of  the 
country.    The  inland  parts  of  the  country  can  for  a  long  time  have 


EXCHANGING  THE  PRODUCTS  OF  INDUSTRY        107 

no  other  market  for  the  greater  part  of  their  goods,  than  the  country 
which  Ues  round  about  them.  .  .  .  The  extent  of  their  market,  there- 
fore, must  for  a  long  time  be  in  proportion  to  the  riches  and  populous- 
ness  of  that  country,  and  consequently  their  improvement  must 
always  be  posterior  to  the  improvement  of  that  country.  In  our  North 
American  colonies  the  plantations  have  constantly  followed  either 
the  sea-coast  or  the  banks  of  the  navigable  rivers,  and  have  scarce 
anywhere  extended  themselves  to  any  considerable  distance  from 
both.  .  .  . 


44.  Beginnings  in  American  railway  development  ^ 

It  follows  from  the  above  selection  that  an  extensive  market  for  Until  the 

commodities  is  dependent  primarily  upon  transportation.     At  the   ^^"^^° ?,      . 

time  that  Adam  Smith  was  studying  the  relation  of  the  market  to   the  Amer- 

the  division  of  labor,  transportation  by  means  of  the  railroad  was   ^'^^^  market 
'  ^  ■'  ^         vvas  a  rela- 

unknown,  and  water  transportation  was  not  effective  in  reaching   lively 
the  interior  parts  of  this  country.    As  a  result,  the  American  market   ^^^^^^  ^°^^' 
for  commodities  was  relatively  a  narrow  one.    It  was  not  until  after 
the  first  quarter  of  the  nineteenth  century  that  the  American  rail- 
way gave  promise  of  greatly  extending  this  market.     The  first  im- 
portant railway  in  the  United  States  was  the  Baltimore  and  Ohio, 
which  opened  to  traffic  in  1830.    This  epoch-making  event  is  described 
by  Mr.  Reizenstein  in  the  following  passage: 
Upon  the  twenty-second  of  May,  1830,  the  first  division  of  the   The 


Baltimore  and  Ohio  Railroad  —  thirteen  and  three-quarters  miles   Baltimore 

and  Ohio 
long,  from  Baltimore  to  EUicott's  Mills  —  was  opened  for  the  trans-   opens  to 

portation  of  passengers.    The  cars  needed  for  general  trafl&c,  however,   }^^^^ 

were  not  ready  until  early  in  June,  but  after  that  time  the  travel 

on  the  road  was  constant.    By  the  first  of  October,  1830,  the  receipts 

were  $20,012.36,  although  the  road  had  only  a  single  track  and  was 

able  to  transport  merchandise  or  produce  during  a  few  months  only. 

The  freight  offered  for  transportation  was  about  ten  times  the  amount 

which  the  company  was  able  to  handle. 

•  From  Milton  Reizenstein,  The  Economic  History  of  the  Baltimore  and  Ohio 
Railroad,  1827-1853.  Johns  Hopkins  University  Studies,  Vol.  xv,  Baltimore,  1897; 
pp.  24-29. 


io8 


READINGS   IN  AMERICAN  DEMOCRACY 


This  crude 
means  of 
transpor- 
tation 


attracted  a 
great  deal 
of  attention. 

The  first 
steam 
locomotive 
was  small, 
but  fairly 
efficient. 


The  opening 

of  this 

railroad 

greatly 

stimulated 

trade  and 

industry. 


The  sight  presented  on  that  May  day  in  1830,  upon  the  occasion 
of  the  opening  of  the  first  railroad  worthy  of  the  name  in  America, 
was  far  less  imposing  than  that  presented  upon  a  similar  occasion 
to-day.  There  were  merely  a  number  of  small  open  carriages,  much 
resembHng  the  old-style  stage-coaches,  with  wheels  so  constructed 
as  to  enable  them  to  run  upon  the  tracks.  Horses  were  used  to  furnish 
the  motive  power.  .  .  . 

The  railroad,  being  the  first  of  its  kind  in  the  country,  naturally 
attracted  much  attention,  and  people  came  from  considerable  dis- 
tances to  see  and  travel  upon  this  new  and  strange  road. 

The  trial  of  the  first  steam  locomotive  on  the  tracks  of  the  Balti- 
more and  Ohio  Railroad  took  place  on  August  25,  1830.  The  loco- 
motive, which  was  the  first  intended  for  railroad  purposes  ever  built 
in  America,  was  the  invention  of  Peter  Cooper.  It  was  scarcely  more 
than  a  model,  weighing  but  a  single  ton,  and  was  appropriately  named 
the  "Tom  Thumb."  .  .  .  The  boiler  was  a  small  upright  one,  about 
the  size  of  a  modern  kitchen  boiler;  its  cylinder  measured  but  three 
and  a  half  inches  in  diameter,  and  its  speed  was  gotten  up  by  gear- 
ing. In  order  to  secure  the  necessary  steam  pressure,  a  sort  of  bellows 
was  used,  which  was  worked  by  a  pulley  and  cord  passing  over  a 
drum  on  one  of  the  car  wheels.  This  crude  machine  was  able  to  pull 
an  open  car  of  smaU  dimensions  from  Baltimore  to  EUicott's  Mills, 
thirteen  miles,  in  an  hour  and  twelve  minutes,  and  the  return  trip 
was  made  in  fifty-seven  minutes.  .  .  . 

The  extension  of  the  railroad  to  the  Point  of  Rocks  had  an  immedi- 
ate effect  upon  that  place.  Several  warehouses  were  erected;  inns, 
dwellings  and  other  improvements  rapidly  arose.  The  facilities  for 
the  transference  of  produce  from  the  Potomac  River  to  the  railroad 
were  ample,  and  the  boatmen  and  farmers  farther  west  resorted 
more  and  more  to  the  Point  of  Rocks  as  the  most  convenient  spot 
from  which  to  reach  the  Baltimore  market.  It  was  stated  also  that 
every  species  of  agricultural  product,  Hme,  timber  of  various  kinds, 
and  even  paving-stones  had  been  brought  to  Baltimore  with  profit 
to  those  making  use  of  the  road.  In  return,  .  .  .  plaster  of  paris, 
coal,  boards,  bricks  and  scrap  iron  had  been  sent  into  the  interior. 
The  existence  of  the  road  had  also  brought  into  use  articles,  in  the 
sparsely  settled  country  through  which  the  railroad  passed,  which 


EXCHANGING  THE  PRODUCTS  OF  INDUSTRY        109 

had  before  been  valueless  to  their  possessors.     Forests  and  quarries 

hitherto  useless  became  sources  of  new  profit  to  the  owners.  .  .  . 

On  January  4,    1831,   the  company  published  a  notice  offering   in  1831  a 

$4,000  for  the  most  approved  engine  which  should  be  deUvered  for   "*^^  ^"^ 

trial  upon  the  road  on  or  before  June  i  of  the  same  year.  .  .  .  When   efficient 

the  time  specified  for  the  trial  had  arrived,  three  locomotives  were   f"Kint  was 

installed 
submitted  for  competition.     Only  one  .  .  .  stood  the  test.    It  .  .  .    by  the 

weighed  si  tons.     It  was  mounted  on  wheels  such  as  those  on  the   '■^"'■°^° 

.         .  .        .  company, 

common  cars,  thirty  inches  in  diameter,  and  ordinarily  made  the  trip 

between  Baltimore  and  Ellicott's  Mills,  drawing  four  cars  ...  in 
one  hour.  .  .  .  The  success  of  this  engine  and  the  satisfaction  that 
it  gave  in  its  regular  use  after  its  trial  led  President  Thomas  to  re- 
mark in  his  annual  report  in  1832  that  the  engine  was  but  "as  the 
commencement  of  a  series  of  experiments  which  will  even  more 
fully  than  has  yet  been  done,  prove  the  adaptation  of  steam  and 
railroads  to  every  part  of  our  country  and  for  all  purposes  of  trade 
and  travel."  .  .  . 


45.   The  nature  and  function  of  money  ^ 

The  development  of  adequate  means  of  transportation  and  com-   Importance 

munication  has  made  possible  the  efficient  transfer  of  commodities   ?  ™°"^y 

m  exchange. 

from  places  in  which  they  are  not  wanted,  or  are  wanted  relatively 
little,  to  places  where  they  are  in  greater  demand.  But  while  trans- 
portation widens  the  market  for  the  products  of  industry,  it  should 
be  noted  that  the  actual  exchange  of  commodities  is  impracticable, 
and  often  even  impossible,  until  there  is  some  device  for  measuring 
the  relative  values  of  commodities,  and  otherwise  facilitating  their 
exchange.  The  need  for  such  a  device  has  given  rise  to  money,  the 
nature  and  function  of  which  Adam  Smith  has  described  in  the 
following    passage: 

When  the  division  of  labor  has  been  once  thoroughly  estabhshed,    Specializa- 
it  is  but  a  very  small  part  of  a  man's  wants  which  the  produce  of  ^'on  the 

,.  result  of 

his  own  labor  can  supply.    He  supplies  the  far  greater  part  of  them   the  division 
by  exchanging  that  surplus  part  of  the  produce  of  his  own  labor,   "^  ^'^^°'"" 

*  From  Adam  Smith,  An  Inquiry  into  the  Nature  and  Causes  of  the  Wealth  of 
Nations.    London,  1776.    Book  i,  Chapter  w. 


no 


READINGS  IN  AMERICAN  DEMOCRACY 


Specializa- 
tion implies 
an  exchange 
of  surplus 
products, 
but  this 
may  be 
difficult  or 
impossible. 


Example  of 
the  butcher, 
the  brewer, 
and  the 
baker. 


In  order  to 
lacilitate 
exchange, 
the  idea  of 
money  has 
been  de- 
veloped. 


Various 
commodities 
have  served 
as  money, 


(which  is  over  and  above  his  own  consumption),  for  such  parts  of 
the  produce  of  other  men's  labor  as  he  has  occasion  for.  Every  man 
thus  Hves  by  exchanging,  or  becomes  in  some  measure  a  merchant, 
and  the  society  itself  grows  to  be  what  is  properly  a  commercial 
society. 

But  when  the  division  of  labor  first  began  to  take  place,  this  power 
of  exchanging  must  frequently  have  been  very  much  clogged  and 
embarrassed  in  its  operations.  One  man,  we  shall  suppose,  has  more 
of  a  certain  commodity  than  he  himself  has  occasion  for,  while  another 
has  less.  The  former  consequently  would  be  glad  to  dispose  of,  and 
the  latter  to  purchase,  a  part  of  this  superfluity.  But  if  this  latter 
should  chance  to  have  nothing  that  the  former  stands  in  need  of,  no 
exchange  can  be  made  between  them. 

The  butcher  has  more  meat  in  his  shop  than  he  himself  can  con- 
sume, and  the  brewer  and  the  baker  would  each  of  them  be  wilHng 
to  purchase  a  part  of  it.  But  they  have  nothing  to  offer  in  exchange, 
except  the  different  productions  of  their  respective  trades,  and  the 
butcher  is  already  provided  with  aU  the  bread  and  beer  which  he 
has  immediate  occasion  for.  No  exchange  can,  in  this  case,  be  made 
between  them.  He  cannot  be  their  merchant,  nor  they  his  customers; 
and  they  are  all  of  them  thus  mutually  less  serviceable  to  one  another. 

In  order  to  avoid  the  inconveniency  of  such  situations,  every 
prudent  man  in  every  period  of  society,  after  the  first  establishment 
of  the  division  of  labor,  must  naturally  have  endeavored  to  manage 
his  affairs  in  such  a  manner,  as  to  have  at  all  times  by  him,  besides 
the  pecuHar  produce  of  his  own  industry,  a  certain  quantity  of  some 
one  commodity  or  other,  such  as  he  imagines  few  people  would  be 
likely  to  refuse  in  exchange  for  the  produce  of  their  industry. 

Many  different  commodities,  it  is  probable,  were  successively 
both  thought  of  and  employed  for  this  purpose.  In  the  rude  ages 
of  society,  cattle  are  said  to  have  been  the  common  instrument  of 
commerce;  and,  though  they  must  have  been  a  most  inconvenient  one, 
yet  in  old  times  we  find  things  were  frequently  valued  according  to 
the  number  of  cattle  which  had  been  given  in  exchange  for  them.  .  .  . 
Salt  is  said  to  be  the  most  common  instrument  of  commerce  and 
exchanges  in  Abyssinia ;  a  species  of  shells  in  some  parts  of  the  coast 
of  India;  dried  cod  in  Newfoundland;  tobacco  in  Virginia.  .  .  . 


EXCIL\NGIXG  THE   PRODUCTS   OF   INDUSTRY        III 

In  all  countries,  however,  men  seem  at  last  to  have  been  deter-   but  ulti- 
mined  by  irresistible  reasons  to  give  the  preference,  for  this  employ-  ^^^^^y  ^U 
ment,  to   metals   above   every  other   commodity.     Metals    cannot   have  pre- 
only  be  kept  with  as  little  loss  as  any  other  commodity,  scarce  any-   ^^"^^ 
thing  being  less  perishable  than  they  are,  but  they  can  likewise,   for  this 
without  any  loss,  be  divided  into  any  number  of  parts.     By  fusion   P'^Pose. 
those  parts  can  easily  be  revmited  again,  a  quahty  which  no  other 
equally  durable  commodities   possess,  and  which,  more  than  any 
other  quahty,  renders  them  fit  to  be  the  instruments  of  commerce 
and  circulation. 

The  man  who  wanted  to  buy  salt,  for  example,  and  had  nothing  How  money 
but  cattle  to  give  in  exchange  for  it,  must  have  been  obhged  to  buy  facilitates 
salt  to  the  value  of  a  whole  ox,  or  a  whole  sheep,  at  a  time.  He  could 
seldom  buy  less  than  this,  because  what  he  was  to  give  for  it  could 
seldom  be  divided  without  loss;  and  if  he  had  a  mind  to  buy  more, 
he  must,  for  the  same  reasons,  have  been  obhged  to  buy  double  or 
triple  the  quantity,  the  value,  to  wit,  of  two  or  three  oxen,  or  of  two 
or  three  sheep.  If,  on  the  contrary,  instead  of  sheep  or  oxen,  he 
had  metals  to  give  in  exchange  for  it,  he  could  easily  proportion  the 
quantity  of  the  metal  to  the  precise  quantity  of  the  commodity 
which  he  had  immediate  occasion  for.  ... 

46.   Price  as  a  measure  of  value  ^ 

At  the  present  time,  therefore,  a  common  method  of  exchanging   The  rela- 

goods  is  through  the  medium  of  money.     The  power  of  one  good   ^'°" 

to  command  another  in  exchange  we  call  value.    When  the  exchange   price. 

of  goods  is  effected  through  the  medium  of  money,  value  is  measured 

in  terms  of  money.    Thus  when  a  man  sells  a  horse  for  $500  and  then 

buys  a  piano  with  this  $500,  he  has  exchanged  the  horse  for  the  piano, 

through  the  medium  of  money.    The  value  of  both  horse  and  piano 

is,  in  this  instance,  measured  by  the  S500.    This  $500,  i.e.  the  measure 

of  the  horse  and  the  piano  in  terms  of  the  medium  of  exchange,  is 

the  price  of  each  commodity.    Price  may  be  defined  as  the  measure 

of  value  in  terms  of  money.    The  importance  of  a  common  measure 

of  things  is  discussed  by  Professor  Gide  in  the  following  extract: 

*  From  Charles  Gide,  Principles  oj  Political  Ecotwmy.    D.  C.  Heath  &  Co., 
1903;  pp.  64-66. 


112 


READINGS  IN  AMERICAN  DEMOCRACY 


Importance 
of  a 
common 
measure 
of  things.     . 


What  a 
common 
measure 
enables  us 
to  do. 


How  value 
IS    measured. 


To  obtain  a  definite  idea  of  the  size,  the  weight,  or  the  value  of 
things,  it  is  not  sufficient  to  compare  them  with  one  another.  A  com- 
mon measure  is  necessary.  For  measuring  lengths  the  term  of  compari- 
son was  originally  a  part  of  the  body  (foot,  eU,  etc.),  and  is  now, 
according  to  the  "metric  system"  introduced  first  in  France,  a  part  of 
the  earth's  circumference  (the  meter,  kilometer,  etc.).  For  measuring 
weights,  the  term  of  comparison  chosen  in  the  metric  system  is  the 
weight  of  a  fixed  volume  of  distilled  water.  The  old  or  original 
English  pound  was  derived  from,  the  weight  of  7686  grains  of  weight, 
all  taken  from  the  middle  of  the  ears  and  well  dried;  hence  "grains" 
form  the  lowest  fractional  parts  of  a  pound.  The  standard  British 
pound  at  present  is  a  piece  of  platinum  preserved  in  the  ofl&ce  of  the 
Exchequer,  at  the  temperature  of  62°  Fahr.  .  .  .  The  yard,  as  the 
standard  English  measure  of  length,  is  the  distance  between  two  marks 
on  a  metal  rod  imbedded  in  the  masonry  of  the  Houses  of  Parliament. 

A  common  measure  enables  us  to  compare  two  things  in  dijfereni 
places  (which  cannot  be  brought  together  for  direct  comparison), 
or  to  compare  the  same  thing  at  different  times  in  order  to  ascertain 
what  changes  have  taken  place  in  it.  By  means  of  the  yard-measure 
we  can  compare  the  stature  of  the  Lapps  with  that  of  the  Patagonians, 
and  tell  exactly  how  much  taller  the  latter  are  than  the  former.  The 
same  standard  of  comparison,  if  it  has  not  been  entirely  forgotten, 
in  a  thousand  years  will  enable  our  descendants  to  compare  themselves 
with  the  man  of  to-day  and  ascertain  whether  or  not  mankind  has 
decreased  in  stature. 

In  order  to  measure  value  it  is  not  sufficient  for  us  to  compare 
two  values  one  with  another  (as  is  done  in  barter),  but  we  must 
take  the  value  of  some  definite  object  as  a  basis  of  comparison.  .  .  . 
It  is  ...  a  remarkable  fact  that  almost  aU  civilized  people  have 
agreed  in  choosing  as  their  measure  of  values,  as  their  standard, 
the  value  of  the'  precious  metals,  gold,  silver,  and  copper,  but  es- 
pecially the  first  two.  They  all  use  a  little  ingot  of  gold  or  silver, 
called  a  dollar,  or  pound,  or  franc,  or  rouble.  To  measure  the  value 
of  any  object,  they  compare  it  with  the  value  of  that  small  weight 
of  gold  or  silver  that  serves  as  the  monetary  unit;  that  is  to  say,  they 
try  to  find  how  many  of  these  bits  of  metal  must  be  given  up  for  the 
commodity  in  question.    If,  for  instance,  ten  are  needed,  they  say 


EXCHANGING  THE   PRODUCTS  OF  INDUSTRY        II3 

the  commodity  is  worth  ten  dollars,  or  ten  pounds,  etc.  That  is 
its  pi-ice. 

The  price  of  a  thing  is,  therefore,  the  expression  of  the  relation   Price 
between  the  value  of  the  thing  and  the  value  of  a  certain  weight   ^^S^^d- 
of  gold  or  silver;   or,  to  put  it  more  briefly,  it  is  its  value  expressed 
in  money.  ... 

47.   A  provision  market  in  a  great  city  ^ 

Under  modern  industrial   conditions  it  often   happens   that  the   Industry 
complex  division  of  labor  requires  the  bringing  together  of  large   ^^^'^^  ^° 
numbers  of  laborers  and  other  industrial  agents.     It  is  primarily  be-   in  cities, 
cause   of   this   necessity  that  there   have  grown  up  in  the   United 
States  great  industrial  cities,   in  which  large  numbers  of  workers 
cooperate  with  one  another  under  the  control  and  superintendence 
of  business  men.    The  products  of  these  specialists  are  carried  to  mar- 
ket by  various  agencies  of  transportation,  and  transportation  in  turn 
brings  to  the  city  most  of  the  food  which  is  in  demand  by  the  various 
classes  of  the  urban  population.     The  following  description  of  a 
provision  market  in  Chicago  will  give  some  idea  of  the  dependence 
of  urban  dwellers  upon  the  mechanism  of  exchange: 

There  is  a  street  in  the  city  of  Chicago  which  is  only  five  blocks  The  prod- 
long.    It  is  said  to  be  one  of  the  busiest  streets  in  the  world.    The   "ce  market 

°  in  Chicago. 

perishable  produce  which  Chicago  needs  for  its  food  is  handled  there 
every  day.  .  .  .  One  should  picture  this  short,  narrow  street,  packed 
with  thousands  of  wagons  and  automobiles  which  are  coming  in  or 
slowly  making  their  way  out  with  the  loads  of  farm  products  to  be 
distributed  to  the  stores  throughout  the  city.  The  warehouses  and 
sidewalks  are  filled  with  the  produce  for  the  day's  sales.  This  produce 
has  been  coming  in  by  the  carload  during  the  night,  and  the  street 
begins  to  be  busy  at  an  early  hour  in  the  morning  —  in  summer 
at  daylight,  in  winter  before. 

Each  warehouse  speciahzes  in  some  particular  class  of  produce.  Here  are 
One  is  devoted  entirely  to  trading  in  cheese.  One  four-story  building  K'1^|^'^''*;" 
is  filled  with  Spanish  and  Bermuda  onions.     Another  has  hundreds 

1  From  the  Department  of  the  Interior,  Bureau  of  Education,  Lessons  in  Com- 
munity and  National  Life.     Washington,   1918.     Series  B,  pp.  34-39- 


114 


READINGS  IN  AMERICAN  DEMOCRACY 


from  all 
parts  of  the 
country. 


The 

"buyer" 
and  his 
functions. 


Some  ways 
in  which 
provisions 
reach 
the  city 
market. 


of  bags  of  potatoes  piled  from  floor  to  ceiling.  These  come  from 
states  as  distant  as  New  Jersey  and  Montana.  A  number  of  cellars 
of  these  warehouses  are  filled  with  ripening  bananas  from  Cuba 
and  pineapples  from  Porto  Rico.  Fruit  from  California  and  Florida 
is  the  chief  stock  of  other  warehouses.  .  .  . 

Many  of  the  warehouses  handle  only  fresh  vegetables.  These 
come  from  the  truck  farms  around  Chicago  and  throughout  the 
IMississippi  valley.  For  example,  tomatoes  are  brought  early  in  the 
spring  from  Mississippi,  and  as  the  season  advances  the  supply 
comes  from  states  further  north.  ...  In  Uke  fashion  in  the  autumn 
it  moves  southward  from  Maine.  The  wide  territory  from  which 
Chicago  draws  these  perishable  products  makes  it  possible  for  the 
people  of  the  city  to  have  fresh  summer  vegetables  at  all  seasons 
of  the  year.  .  .  . 

The  markets  which  we  have  been  describing  .  .  .  would  not 
be  possible  without  the  labor  of  a  great  number  of  people,  some  of 
whom  are  concerned  \vith  the  distribution  of  produce  to  the  con- 
sumer, some  with  bringing  the  produce  into  the  city,  others  with 
securing  it  at  the  points  w^here  it  is  produced.  .  .  . 

The  man  who  comes  into  the  most  direct  contact  with  the  pro- 
ducer is  the  "buyer."  .  .  .  He  goes  through  a  producing  territory, 
making  contracts  with  the  producers  for  the  whole  or  a  stated  portion 
of  their  output,  or  bu>'ing  from  day  to  day  wherever  he  can  secure 
goods  at  satisfactory  prices.  He  keeps  in  close  touch  with  his  em- 
ployer, advising  him  by  letter,  telegraph,  or  telephone  of  the  con- 
dition of  the  field  and  the  outlook  as  to  quantity,  quality,  prices 
demanded,  and  amouijt  and  character  of  competition  from  other 
buyers.  In  turn  he  is  advised  about  the  demand  at  the  market  and 
instructed  as  to  how  much  to  buy  and  what  to  pay.  The  buyer  turns 
his  purchases  over  to  the  transportation  companies,  who  in  turn 
deUver  them  to  the  market.  ... 

Goods  may  arrive  at  the  city  market  under  other  conditions. 
Sometimes  the  producer  ships  his  products  to  a  commission  mer- 
chant, who  sells  them  for  him.  Sometimes  selling  associations  of 
the  producers  send  their  products  to  their  own  representatives  on 
the  market.  Producers  in  remote  regions  sometimes  combine  their 
shipments  and  send  them  in  carload  and  trainload  lots  to  the  large 


^1 

mi 


EXCHANGING  THE  PRODUCTS  OF  INDUSTRY        1 15 

cities,  where  they  are  sold  at  public  auction.  The  auction  sale  gener- 
ally takes  place  at  railroad  freight  yards  or  at  steamship  piers.  The 
commodities  sold  by  auction  are  usually  limited  to  the  citrus  fruits 
from  CaUfornia,  Florida,  and  foreign  countries,  and  the  deciduous 
fruits,  such  as  cherries,  grapes,  plums,  peaches,  apples,  and  other 
fruits  from  the  West  and  Northwest.  .  .  . 

When  the  goods  reach  the  market  they  are  handled  by  a  number  The 
of  different  kinds  of  traders.    The  most  famihar  t>T)e  is  the  retailer,   retailer, 
whom  everybody  knows,  because  it  is  he  who  supphes  the  family 
with  the  small  quantities  needed  from  time  to  time.  .  .  . 


48.    The  advantages  of  exchange  ^ 

There  was  formerly  some  discussion  as  to  whether  or  not  exchange   The  advan- 
were  productive.     It  was  said,  for  example,  that  exchange  could   ^^^^  °   ^^' 
benefit  no  one,  for  if  an  exchange  is  a  fair  one  and  the  values  of  the   no  longer 
goods  exchanged  are  equal,  there  can  be  neither  gain  nor  loss  on   ^^^^<^- 
either  side.    Sometimes,  too,  it  was  said  that  one  party  to  an  exchange 
of  commodities  was  certain  to  lose,  for  how  could  anyone  reap  an 
advantage   from   exchange   without   the   other   party   sustaining   a 
loss?    These  arguments  no  longer  carry  weight,  and  to-day  it  is  uni- 
versally agreed  that  the  voluntary  exchange  of  products  is  generally 
advantageous  to  both  parties  to  the  exchange.     The  advantages  of 
exchange  are  outlined  by  Professor  Gide  in  the  following  summary: 

.  .  .  We  shall  state  briefly   the   advantages  of  exchange  from 
the  practical  point  of  view. 

(i)  Exchange  enables  us  to  utihze,  in  the  best  way  possible,  a   Exchange 
large  quantity  of  wealth  which  without  exchange  would  remain  unused.   ^"^^^.1^^"^ 
Without  exchange,  what  would  England  do  with  her  coal,  California   wealth 
with  her  gold,  Peru  with  her  guano,  Brazil  with  her  chinchona  bark?   ^,J^^ 
When  analyzing  the  notion  of  wealth,  we  found  that  an  indispensable   otherwise 
condition  of  any  object  ranking  as  wealth  was  its  capabiUty  of  being   ^'^'"!1^ 
utilized.     And  in  order  that  this  may  be  effected,  the  article  must 
be  conveyed,  by  means  of  exchange,  to  the  person  who  is  to  use  it 
—  the  quinine  to  the  fever  patient,  the  guano  to  the  farmer,  the 

*  From  Charles  Gide,  Principles  of  Political  Economy.    D.  C.  Heath  &  Co., 
1903;  pp.  198-200. 


ii6 


READINGS  IN  AMERICAN  DEMOCRACY 


It  likewise 

enables  us 

to  utilize 

productive 

capacities 

which 

would 

otherwise 

remain 

inactive. 


The  division 
of  labor  de- 
pends upon 
exchange. 


coal  to  the  manufacturer.  Suppose  that  exchange  were  suppressed 
everywhere,  and  that  all  persons  and  aU  nations  were  obliged  to 
keep  aU  the  wealth  they  possess.  What  an  enormous  mass  of  wealth 
woiJd  thus  be  condemned  to  remain  useless,  and  doomed  to 
destruction!  .  .  . 

In  other  words,  we  must  regard  exchange  as  the  last  of  the  series 
of  productive  acts  that  begins  with  invention  (which  is  also  an  im- 
material act)  and  continues  throughout  the  whole  hst  of  agricultural, 
manufacturing,  and  transporting  industries,  bringing  products  step 
by  step  nearer  to  their  final  destination,  which  is  to  come  into  the 
possession  of  the  persons  who  will  use  them.  These  steps  are  changes 
of  form,  changes  of  place,  and  changes  of  ownership  —  all  three  of 
which  are  equally  indispensable  to  the  attainment  of  the  final  result. 

(2)  Exchange  enables  us  to  utilize  in  the  best  way  a  host  of  pro- 
ductive capacities  which  without  exchange  would  remain  inactive.  If 
there  were  no  such  thing  as  exchange,  each  man  would  be  compelled 
to  produce  all  that  is  necessary  to  supply  his  wants.  If  his  wants 
were  ten  in  number,  he  would  have  to  ply  ten  different  trades. 
Whether  he  did  this  well  or  not  would  not  alter  the  case;  he  would 
be  obliged  to  regulate  his  production  not  according  to  his  aptitudes, 
but  according  to  his  wants.  With  the  introduction  of  exchange,  how- 
ever, the  state  of  affairs  is  completely  changed.  Everyone  is'  then 
sure  of  obtaining  by  exchange  just  what  he  needs;  every  one,  more- 
over, devotes  himself  to  the  production  of  those  things  which  he 
can  produce  best.  He  regulates  his  production,  not  according  to 
his  wants,  but  according  to  his  aptitudes  or  his  means.  Before  the 
era  of  exchange,  everyone  was  obliged  to  produce  what  he  needed 
most;  now  everyone  devotes  himself  solely  to  the  production  of  what- 
ever he  can  most  easily  produce.  This  is  a  most  important  and 
wonderful  progress.  .  .  . 

If  there  were  no  exchange,  association  and  division  of  labor  would 
require  a  previous  agreement  among  those  who  are  to  work  in  har- 
mony. What  would  be  the  use  of  the  most  perfect  division  of  labor 
in  an  immense  factory  producing  (let  us  say)  hats,  unless  other  persons 
were  simultaneously  producing  food,  shoes,  houses,  etc.,  to  exchange 
for  these  hats?  Exchange  dispenses  with  the  necessity  for  a  pre- 
liminary agreement,  and  thus  enables  the  division  of  labor  to  extend 


EXCHANGING  THE   PRODUCTS  OF  INDUSTRY        I17 

beyond  the  narrow  circle  of  the  home  and  the  workshop,  and  spread 
over  the  whole  industrial  community,  reaching  even  to  the  extremes 
of  the  earth. 

Under  a  system  of  exchange,  each  man  —  no  matter  where  he  The  results 
may  be  —  produces  according  to  his  natural  or  acquired  aptitudes  exchange, 
and  according  to  the  facilities  offered  by  the  region  which  he  inhabits; 
he  devotes  himself  entirely  to  one  kind  of  labor,  and  always  puts 
the  same  product  on  the  market,  with  a  certainty  that  the  ingenious 
arrangements  of  exchange]  will  permit  him  to  receive  in  exchange 
any  other  objects  that  he  wants.  It  has  often  been  remarked  that 
the  things  which  any  one  of  us  consumes  in  a  day,  are  the  combined 
result  of  the  toil  of  hundreds  or  perhaps  thousands  of  workers  who 
are  united  one  to  another  by  invisible  but  none  the  less  real  bonds 
of  association. 


Questions  on  the  foregoing  Readings 

1.  Under  what  circumstances  would  it  be  uneconomical  to  increase 

the  product  of,  say,  a  manufacturing  plant? 

2.  What  does  Adam  Smith  say  concerning  the  relation  of  the  division 

of  labor  to  the  extent  of  the  market? 

3.  Name  some  sorts  of  industry  which  can  be  carried  on  only  in  a 

large  town  or  city. 

4.  Explain  the  relation  of  water-carriage  to  the  market. 

5.  Why  was  the  American  market  a  relatively  narrow  one  at  the 

time  that  Adam  Smith  was  studying  the  relation  of  the  market 
to  the  division  of  labor? 

6.  What  was  the  first  important  railway  in  the   United  States? 

7.  When  was  this  railway  opened  to  traffic? 

8.  Describe  the  first  steam  locomotive  used  by  this  railway. 

9'.    What  was  the  effect  of  the  opening  of  this  railway  upon  the  ex- 
change of  products? 

10.  What  is  necessary  to  the  effective  exchange  of  products  besides 

the  division  of  labor  and  the  development  of  transportation? 

11.  Describe  the   manner  in  which  barter  clogs  or  embarrasses   the 

exchange  of  products. 

12.  Name  some  commodities  which  at  different  times,  and  in  different 

countries,  have  been  used  as  money. 

13.  Why  are  metals  more  suited  to  be  used  as  money  than  are  other 

commodities? 

14.  Give  an  example  of  how  money  facilitates  exchange. 


Il8  READINGS  IN  AMERICAN  DEMOCRACY 

15.  Define  price. 

16.  What  is  the  importance  of  a  common  measure  of  objects? 

17.  How  is  value  measured? 

18.  Name  an  important  cause  of  the  growth  of  cities. 

19.  What  is  the  importance  to  urban  dwellers  of  an  efficient  provision 

market? 

20.  Describe  briefly  the  provision  market  in  Chicago. 

21.  Describe  the  functions  of  the  "  buyer  "   for  this  market. 

22.  What  arguments  were  once  advanced  to  prove  that  exchange  is 

not  a  productive  process? 

23.  Explain  how  exchange  enables  us  to  utilize  wealth  which  would 

otherwise  remain  unused. 

24.  Explain  how  exchange  enables  us   to   utilize   in   the  best  way  a 

host   of   productive   capacities   which   without   exchange   would 
remain  inactive. 

25.  What  is  the  relation  of  exchange  to  the  division  of  labor? 


trial  Rev- 
olution. 


CHAPTER   IX 
DISTRIBUTING    THE   INCOME   OF   INDUSTRY 

49.   Distribution  previous  to  the  Industrial  Revolution  ^ 

The  most  difficult,  as  well  as  the  most  important,  problem  in   The  prob- 

the  whole  field  of  economics  is  unquestionably  the  distribution  of    ,!^  ?}    . 

distribution 

wealth.     Ever  since  men  began   to   combine  in  production  there   has  become 
must  have  been  some  question  as  to  what  share  of  the  joint  product   ""portent 

only  since 

each  was  to  get.     But  though  the  problem  of  distribution  is  an  the  Indus- 
ancient  one,  it  is  only  since  the  Industrial  Revolution  that  it  has 
become  of  overwhelming  importance.    As  recently  as  colonial  times, 
indeed,  the  problem  was  not  generally  of  great  importance,  as  the 
following  description  of  a  colonial  farm  will  show: 

In  colonial  times  there  was  very  httle  trading.     The  roads  were  The  colo- 

few  and  in  poor  condition.    There  were  no  railroads  and  no  oppor-   '^'^    ^''™, 
^  ^^  was  pract: 

tunities  on  many  of  the  farms  to  make  use  of  boats  and  water  trans-   cally  self- 
portation.    People  had  to  be  independent,  that  is  to  say,  self-sufficing,    sufficing. 
The  farm  was  not  merely  a  place  for  raising  Uve  stock,  poultry,  grain, 
vegetables,  and  fruit ;  it  was  also  a  manufactory^  of  almost  everything 
needed  in  daily  life.     The  farmer  and  his  family  produced  the  raw 
materials  and  also  made  them  into  useful  articles. 

Generally  speaking,  these  articles  included:  (i)  Wearing  apparel  Types  of 
and  household  textile  supplies;  (2)  household  implements,  utensils,  ^  '^^^ 
furniture,  necessities,  and  comforts;  (3)  farming  implements,  build- 
ing materials,  and  general  supplies.  A  few  things  were  purchased 
from  occasional  traders  who  came  to  the  farm.  A  few  things  were 
purchased  in  the  towns  on  the  infrequent  visits  of  the  farmer  to  the 
more  densely  settled  districts.  Thus  the  scythes  were  made  at  the 
forge,  and  only  the  handles  were  made  on  the  farm.  Saws  and  axes 
were  imported  from  England,  or  later  from  those  regions  where  iron  * 

*  From  the  Department  of  the  Interior,  Bureau  of  Education,  Lessons  in  Com' 
munity  and  Natio7ial  Life.    Washington,  1918.     Series  B,  pp.  17-24. 

119 


120 


READINGS  IN  AMERICAN  DEMOCRACY 


The  home 
manufacture 
of  furniture 


and  agri- 
cultural 
implements. 


Other 
manufac- 
tures. 


The  making 
of  clothing 
by  the 
farmer 


was  abundant  and  easy  to  secure.  Not  all  metal  articles  were  im- 
ported. The  soft  pewter  metal  which  went  into  the  forks  and  knives 
could  often  be  worked  into  household  utensils  in  the  domestic  fac- 
tory —  the  home.  .  .  . 

The  first  settlers  brought  some  furniture  from  Europe  with  them, 
but  as  they  migrated  inland  it  proved  to  be  too  bulky  to  move,  so 
that  the  inhabitants  of  each  new  settlement  were  compelled  to 
make  within  their  homes  such  articles  as  tables,  stools,  cupboards, 
and  bedsteads.  .  .  . 

The  farmer  not  only  made  his  house  and  furniture  from  Ivunber, 
shingles,  and  nails  of  his  own  manufacture,  but  he  had  to  make  the 
implements  with  which  to  work  his  farm.  These  consisted  of  vehicles 
of  transportation,  plows,  harrows,  pitchforks,  handrakes,  shovels, 
ax  handles,  hoe  handles,  scythe-snaths,  singletrees  .  .  .  and  harness 
for  his  horse,  if  he  chanced  to  have  one.  All  manner  of  makeshifts 
were  often  necessary  to  supply  some  of  these  articles.  For  example, 
horse  collars  were  made  of  corn  husks;  hames  of  crooked  roots; 
chps,  clevises,  and  laprings  of  hickory  withes;  ox  yokes  of  bent  hickory 
wood;  traces  and  bridles  of  twisted  deer  hide,  and  pitchforks  from 
forked  boughs  or  antler  horns.  .  .  . 

Besides  making  the  implements  with  which  to  till  his  farm,  the 
farmer  and  his  boys  had  also  to  make  the  tools  with  which  the  products 
of  the  farm  were  brought  into  condition  for  use.  They  made  their 
own  cider  mills,  cheese  presses,  spinning  wheels,  flax  brakes,  swingling 
knives,  wool  combs,  looms,  and  implements  used  in  making  hominy 
and  bread.  .  .  . 

The  hides  of  animals  killed  for  food  on  the  farm,  or  of  the  deer, 
squirrels,  raccoons,  rabbits,  beavers,  and  foxes  shot  or  trapped  in 
the  woods,  were  used  for  many  purposes.  Deerskins  were  made 
into  hunting  shirts,  breeches,  coats,  leggings,  and  moccasins.  Gloves 
and  mittens  were  made  from  the  skins  of  squirrels  and  beavers, 
caps  from  the  skins  of  raccoons,  bears,  foxes,  cats,  rabbits,  and  wood- 
chucks.  Bearskins  were  made  into  beds  and  bedding.  From  the 
deerskins  and  cowhides,  moccasins,  shoe-packs,  and  shoes  were  made. 
The  preparation  of  the  material  and  the  making  of  all  of  these  articles 
were  done  on  the  farm,  the  work  being  the  duty  chiefly  of  the  men 
and  boys.  .  .  . 


DISTRIBUTING  THE  INCOME  OF  INDUSTRY  1 21 

While  the  farmer  and  his  boys  were  busy  supplying  leather  clothing,   and  his 
the  wife  and  daughters  were  manufacturing  cloth  to  be  used  for  ^^"^'ly- 
wearing  apparel  and  as  household  textile  supphes.    Cloth  was  made 
from  cotton,  wool,  or  flax.    The  making  of  these  involved  the  prepa- 
ration  of   the   raw  material  for  the  spinning  wheel   and  loom,  and 
bleaching  and  dyeing  the  finished  products.  .  .  . 


50.   Distribution  since  the  Industrial  Revolution  ^ 

Under  the  conditions   described  in   the  preceding   selection  the  Distribu- 

problem  of  distribution  was  relatively  unimportant.     The  farmer  ^]°^  ^ 

and  the  various  members  of  his  family  cooperated  in  the  production  simple 

of  many  goods,  yet  the  distribution  of  the  joint  product  was  an  easy  ^"^"^^^ 

matter.     In  the  first  place,   relatively  few  persons  were  involved,  conditions. 
In  the  second  place,  the  fact  that  these  persons  were  bound  together 
by  family  ties  rendered  easy  a  just  and  peaceable  distribution  of 
the  products  of  their  joint  labor. 

But  since  the  Industrial  Revolution,  fewer  and  fewer  individuals.  Effect  of 

(or  small  groups  of  individuals),  have  continued  to  be  self-sufficing,  the  indus- 

_  trial  Revo- 

and  more  and  more  persons  have  become  involved  in  the  complex   lution  upon 
division  of  labor.     This  change  has  brought  many  benefits,  but  it   ^^^  problem, 
has  also  rendered  more  difficult  the  just  distribution  of  wealth  pro- 
duced jointly.     The  problem  of  distribution   since  the  Industrial 
Revolution  is  briefly  outlined  by  Professor  Carver  in  the  foUowing 
passage: 

The  problem  of  the  distribution  of  wealth  is  the  problem  of  dividing  The 
the  products  of  the  industr>'  of  the  community  among  the  various  ^'^^  ?^ 
classes.  The  claim  of  each  class  to  a  share  of  the  wealth  is  usually 
based  upon  the  claim  that  each  has  contributed  something  to  its  pro- 
duction. The  contribution  may  be  labor,  either  mental  or  physical; 
it  may  be  capital,  or  the  results  of  foresight  or  investing;  or  it  may 
be  land  which  the  owner  has  appropriated  or  other\vise  come  into 
possession   of.  .  .  . 

We  are  sometimes  told  that  most  goods  are  socially  produced. 
This  is  a  rather  impressionistic  statement;   it  may  do  no  harm,  but 

*  From  Thomas  Nixon  Carver,  Principles  oj  Political  Economy.    Ginn  &  Co., 
1919;  pp.  36s,  381-383,  385. 


122 


READINGS  IN  AMERICAN  DEMOCRACY 


and  illus- 
trated by 
an  example. 


The  division 
of  labor  is 
of  two 
kinds. 


The 

successive 
division  of 
labor  rela- 
tively un- 
important. 


DifEculty  of 
the  problem 
with  respect 
to  the  con- 
tempora- 
neous divi- 
sion of 
labor. 


it  is  liable  to  misinterpretation.  It  would  be  better  to  say  that  most 
goods  are  produced  by  the  joint  efforts  of  several  persons.  The 
total  reward  which  can  go  to  all  of  them  cannot  in  the  long  run 
exceed  the  total  value  of  the  finished  product.  This  must  be 
divided  among  all  those  who  have  participated  in  its  production. 
The  price  of  the  loaf  of  bread  must  reward  all  those  who  have 
had  any  part  in  its  production,  including  the  baker,  the  miller, 
the  various  transportation  agencies,  and  the  farmer,  as  well  as  the 
manufacturers  of  the  farmer's,  the  baker's,  and  miller's  tools,  and 
so  on  back  to  the  lumbermen  and  the  miners  who  extracted  the  raw 
material  out  of  which  the  tools  were  made.  .  .  . 

The  division  of  labor  [isj  of  two  kinds:  contemporaneous  and  suc- 
cessive. We  have  the  successive  division  among  the  farmer,  the  miUer, 
the  railroad,  and  the  baker,  since,  one  after  the  other,  they  work  on 
the  same  material.  We  have  an  example  of  the  contemporaneous 
division  of  labor  in  the  case  of  the  mill  owner  and  his  employees  of 
various  kinds,  the  farmer  and  his  hired  men,  the  railroad  company 
and  its  employees,  and  so  on. 

The  problem  of  distributing  the  price  of  the  finished  product  among 
those  who  work  upon  the  raw  material  in  regular  succession  is  simply 
a  problem  in  the  price  of  commodities.  Thus,  the  reward  of  the 
farming  comes  to  them  in  the  form  of  the  price  of  wheat.  This 
price  must  then  be  distributed  among  the  contemporaneous  workers 
on  the  farm,  that  is,  the  farmer  himself  and  his  hired  men.  The 
difference  between  the  price  of  wheat  and  the  price  of  flour  and  its 
by-products  must  furnish  the  reward  for  the  milling  group,  and  the 
difference  between  the  price  of  flour  and  the  price  of  bread  must 
furnish  the  total  reward  for  the  baking  group.  All  this  is  fairly  simple 
and  leads  to  no  serious  social  problem.  .  .  . 

The  great  social  problem  of  to-day,  so  far  as  it  related  to  the 
distribution  of  wealth,  is  the  problem  of  distributing  the  price  of 
the  product  among  the  contemporaneous  workers.  Of  the  total 
price  of  wheat,  how  much  should  go  to  the  landowner  (if  he  is  a  differ- 
ent man  from  the  farmer),  how  much  to  the  farmer,  how  much  to 
the  laborer,  how  much  to  the  capitaHst  (if  he  is  a  different  man 
from  the  farmer)?  Or,  again,  of  the  total  spread  between  the  price 
of  wheat  and  the  price  of  flour,  which  furnishes  the  total  reward  to 


DISTRIBUTING  THE  INCOME  OF  INDUSTRY  1 23 

the  milling  group,  how  much  should  go  to  the  capitalist,  how  much  * 
to  the  owner  of  the  mill  site,  how  much  to  the  manager,  and  how 
much  to  the  various  types  of  laborers?  And  so  on  through  the  trans- 
portation groups  and  the  baking  groups,  the  difficult  problem  is 
always  that  of  the  distribution  of  the  total  earnings  of  the  group 
among  the  contemporaneous  workers  within  it.  .  .  . 

It  simplifies  the  problem  somewhat  to  classify  those  who  take  The  four 
part  in   the  contemporaneous   division   of  labor  according   to  the   main  classes 
functions  which  they  are  supposed  to  perform.     It  is  customary  to   take  part 
divide  them  into  four  main  classes.    The  first  class  is  made  up  of  the  ^  *^^  ^°°* 

tempora- 
laborers,  who  work  either  with  their  hands  or  with  their  heads,  and   neous  divi- 

receive  their  share  in  the  form  of  wages  or  salaries  (for  the  sake  of   f^?'^  °^ 

labor. 

simplicity,  salaries  are,  in  this  chapter  included  under  wages) ;  the 
second  class  is  made  up  of  the  land-owners  who  furnish  the  land  and 
receive  rent;  the  third  class  is  made  up  of  capitalists,  who  supply 
the  capital  and  receive  a  reward  in  the  form  of  interest;  and  the 
fourth  class  is  made  up  of  the  independent  business  men,  who  under- 
take to  assemble  all  the  other  factors,  —  who  take  the  chief  risks 
of  the  enterprise,  and  receive  whatever  is  left  over  after  all  the  others 
have  been  paid,  and  call  it  profits.  .  .  . 


51.   Some  factors  influencing  rent  ^ 

The  matter  of  rent  has  given  rise  to  a  great  deal  of  discussion   Rent  as  an 
among  economists.     Conflicting   theories  have  been  evolved  with   theory  has 
respect  to  the  relation  of  rent  to  wages,  interest  and  profits.     But   given  rise 
though  rent  as  an  economic  theory  is  involved  in  much  dispute,   ^^^^^^^ 
at  least  students  of  the  subject  are  agreed  as  to  the  chief  factors  discussion, 
which  influence  the  rent  of,  say,  agricultural  land.    These  factors 
are  briefly  outlined  by  Professor  BuUock  in  the  following  passage: 

Rent,  in  the  economic  use  of  the  word,  is  the  return  that  is  secured   Rent  de- 
by  the  owner  of  any  natural  agent.     The  most  common  case  is  the   ji^ustrated. 
rent  secured  from  land,  but  the  rent  of  water  privileges,  dock  facilities, 
etc.,  is  an  income  of  the  same  sort.    Natural  agents  are  reduced  to 
private  ownership  when  they  become  scarce  relatively  to  the  demand 

1  From   Charles  J.   Bullock,  Introduction   to   the   Study   of  Economics.   Silver, 
Burdett  &  Co.,  1900;  pp.  399,  401. 


124 


READINGS  IN  AMERICAN  DEMOCRACY 


Origin  of 
the  rent 
of  land. 


The  influ- 
ence of 
fertihty. 


Importance 
of  location. 


for  them.  Land  became  private  property  only  when  nomadic  peoples 
settled  down  to  agricultural  life,  and  arable  land  became  scarce.  .  .  . 

The  income  received  from  natural  agents  may  be  explained  by 
considering  its  most  common  form,  the  rent  of  land.  Such  rent 
arises  out  of  differences  in  the  desirability  of  various  tracts  of  land, 
due  to  differences  in  location  or   in  natural  fertihty. 

For  agricultural  purposes  the  natural  fertility  of  land  is  important. 
Nature  does  much  more  to  make  some  lands  fertile  than  it  does  for 
others.  Temperature  and  rainfall  favor  some  lands.  Some  soils 
are  far  stronger  than  others,  and  can  be  used  continually  without 
deteriorating  in  the  same  degree.  A  plain  has  certain  advantages 
over  the  slopes  of  a  mountain,  and  land  with  a  southern  exposure 
is  superior  to  land  that  slopes  to  the  north.  When  land  is  once  brought 
into  cultivation,  then  the  condition  of  the  soil  depends  also  upon 
the  methods  employed  to  preserve  its  fertility;  but  natural  differences 
still  remain  very  important. 

The  location  of  a  tract  of  land  is  important  in  determining  its 
desirability  for  any  purpose  whatever.  Agricultural  land  must  be 
accessible  to  the  market,  and  the  rent  secured  from  it  will  depend 
partly  upon  this  consideration.  Land  used  for  residence  purposes 
will  be  more  or  less  desirable  according  to  its  accessibility,  its  health- 
fulness,  and  the  beauty  of  its  surroundings.  Land  used  for  the  loca- 
tion of  manufacturing  or  commercial  enterprises  must,  above  all, 
be  accessible  to  the  market,  to  means  of  transportation,  and  to  the 
labor  supply.  .  .  . 


The  pay- 
ment of 
interest  is 
no  longer 
considered 
unethical. 


52.    Some  factors  influencing  interest  ^ 

In  the  Middle  Ages  some  people  thought  that  the  payment  of 
interest  was  unethical.  One  reason  for  so  thinking  was  that  since 
money  is  an  inanimate  object  it  cannot  propagate  itself  in  the  manner 
that  animals  propagate  themselves.  For  this  reason,  it  was  contended, 
a  man  who  has  loaned  out  $1000  has  no  right  to  demand  back  any 
more  than  this  amount.  However,  this  point  of  view  no  longer  pre- 
vails, and  to-day  we  say  that  the  payment  of  interest  for  the  use  of 
capital  is  not  only  necessary  but  just,  for  the  reason  that  with  it  the 

1  From  Henry  Rogers  Seager,  Principles  of  Economics.  Henry  Holt  &  Co., 
1917;  pp.  269-272. 


DISTRIBUTING  THE   INCOME   OF  INDUSTRY  1 25 

borrower  is  enabled  to  produce  more  goods  than  he  could  otherwise 

have  produced.    In  the  following  passage,  Professor  Seager  discusses 

some  of  the  reasons  for  variations  in  the  interest  rate: 

The  most  familiar  ground  for  dit^erences  in  the  return  from  differ-   The  effect 

ent  investments  is  the  presence  of  monopoly.     The  monopolist  de-   "^  monop- 

oly. 
Hberately  restricts  the  output  of  the  monopolized  product  so  that 

the  returns  to  the  capital  and  labor  he  employs  exceed  those  to  be 

realized  in  competitive  industries.  .  .  . 

Another  cause  of  differences  in  interest   rates  results  from  the   Risk  may 
danger  of  accidental  destruction   to  which  some  capital  goods  are  F^'^^  ^^'"^ 
exposed.     Whenever  this  danger  may  be  provided  against  by  the   rate, 
machinery  of  insurance,  the  difference  figures  simply  in  the  larger 
replacement  fund  which  must  be  earned  in  addition  to  current  inter- 
est by  the  capital  goods  affected.    In  many  cases  the  danger  is  too 
irregular  and  uncertain  to  be  insured  against,  and  the  increased  inter- 
est needed  to  attract  capital  into  the  precarious  investment  depends 
upon  the  temperament  of  investors.     Conservative  people  will  be 
deterred  by  the  fear  of  loss  from  investing  at  all  in  such  enterprises. 
More  reckless  and  optimistic  capitahsts  may  be  tempted  into  taking 
large  risks  by  the  promise  of  only  a  slightly  larger  return  than  the 
current  rate  of  interest. 

In  addition  to  the  differences  in  rates  of  interest  earned  in  differ-   interest 
ent  investments  and  by  different  kinds  of  capital  goods,  there  are   '^^^^^  ^^^ 
differences  among  different  sections.     Although  much  more  readily   different 
transported  to  the  best  market  than  labor,  capital  also  is  timid  about   sections 

r  r  •  ^  of    the 

venturmg  too  far  from  its  source.    Capitahsts  usually  feel  that  they   country, 
can  better  estimate  the  risks  involved  in  investments  near  home 
than  at  a  distance. 

In  consequence  of  this  feeling  capital  tends  to  be  concentrated  in 
the  centers  where  men  of  wealth  live,  and  new  and  backward  com- 
munities are  able  to  command  less  than  their  proportionate  share 
of  the  available  capital  equipment.  Instead  of  there  being  one  rate 
of  interest  on  free  capital  in  a  country  Hke  the  United  Sta,tes  there 
are  a  variety  of  rates,  ranging  from  the  low  rates  found  in  the  large 
cities  and  the  manufacturing  sections  of  the  North  and  East  to  the 
high  rates  prevailing  in  the  agricultural  and  mining  regions  of  the 
South  and  West. 


126 


READINGS  IN  AMERICAN  DEMOCRACY 


though  such 
variations 
tend  to 
decrease. 


A  variation  of  from  two  to  three  per  cent  between  the  rates  of 
interest  regularly  charged  for  equally  good  loans  by  banks  in  New 
York  and  Arizona  roughly  reflects  the  difference  in  the  earning 
power  of  capital  goods  in  the  two  locaUties.  As  the  country's  banking 
system  is  perfected  and  different  districts  are  brought  into  more 
intimate  business  relations,  the  supply  of  capital  will  tend  to  dis- 
tribute itself  more  equally  over  the  entire  industrial  field  and  such 
differences  will  become  less  marked.  .  .  . 


Social  im- 
portance of 
the  problem 
of  wages. 


The  effect 
of  ease  and 
cleanliness 
upon  wages. 


53.    Some  factors  influencing  wages  ^ 

A  proper  appreciation  of  the  principles  influencing  rent  and  inter- 
est is  an  important  concern  of  the  student  of  economics.  At  least 
equally  important  is  the  matter  of  the  share  of  the  joint  income  of 
industry  which  goes  to  laborers  in  the  form  of  wages.  Indeed,  some 
observers  believe  wages  to  be  of  more  social  importance  than  any 
of  the  other  shares  in  distribution,  first,  because  the  wage-earners 
outnumber  those  who  are  primarily  land-owners,  capitaUsts  or 
entrepreneurs,  respectively;  and  second,  because  most  laborers  are 
dependent  entirely  upon  their  wages  for  their  livelihood,  while  those 
who  are  primarily  land-owners,  capitalists,  or  entrepreneurs  are, 
in  a  financial  sense,  in  a  less  precarious  position.  Be  this  as  it  may, 
the  social  importance  of  the  problem  of  wages  cannot  be  denied. 
In  the  following  selection  Adam  Smith  discusses  some  of  the  factors 
influencing  wages: 

First,  the  wages  of  labor  vary  with  the  ease  or  hardship,  the  clean- 
liness or  dirtiness  ...  of  the  employment.  Thus  in  most  places, 
take  the  year  round,  a  journeyman  tailor  earns  less  than  a  journey- 
man weaver.  His  work  is  much  easier.  A  journeyman  weaver  earns 
less  than  a  journeyman  smith.  His  work  is  not  always  easier,  but 
it  is  much  cleanlier.  A  journeyman  blacksmith,  though  an  artificer, 
seldom  earns  so  much  in  twelve  hours  as  a  collier,  who  is  only  a 
laborer,  does  in  eight.  His  work  is  not  quite  so  dirty,  is  less  dangerous, 
and  is  carried  on  in  daylight,  and  above  ground.  .  .  . 

Secondly,  the  wages  of  labor  vary  with  the  easiness  and  cheapness, 

^  From  Adam  Smith,  An  Inquiry  into  Ike  Nature  and  Causes  of  ike  Wealth  oj 
Nations.    London,  1776.    Book,  i,  Chapter  x,  Part  i. 


J. 


DISTRIBUTING  THE  INCOME  OF  INDUSTRY  1 2  7" 

or  the  difficulty  and  expense  of  learning  the  business.     When  any   The  cost 
expensive  machine  is  erected,  the  extraordinary  work  to  be  performed  °^  training 

,.,...  .  ,  ,  and  educa- 

by  It  before  it  is  worn  out,  it  must  be  expected,  will  replace  the  capital  tion  influ- 
laid  out  upon  it,  with  at  least  the  ordinary  profits.  A  man  educated  ^°"^  wages 
at  the  expense  of  much  labor  and  time  to  any  of  those  employments 
which  require  extraordinary  dexterity  and  skill,  may  be  compared 
to  one  of  those  expensive  machines.  The  work  which  he  learns  to 
perform,  it  must  be  expected,  over  and  above  the  usual  wages  of 
common  labor,  will  replace  to  him  the  w^hole  expense  of  his  education, 
with  at  least  the  ordinary  profits  of  an  equally  valuable  capital. 
It  must  do  this,  too,  in  a  reasonable  time,  regard  being  had  to  the 
very  uncertain  duration  of  human  Ufe.  .  .  . 

The  difference  between  the  wages  of  skilled  labor  and  those  of  An  illus- 
common  labor  is  founded  upon  this  principle.  .  .  .  [Those  desiring  ^'^'^tion. 
to  become  skilled  laborers  must  first  serve  an  apprenticeship.]  Dur- 
ing the  continuance  of  the  apprenticeship,  the  whole  labor  of  the 
apprentice  belongs  to  his  master.  In  the  meantime  he  must,  in  many 
cases,  be  maintained  by  his  parents  or  relations,  and  in  almost  all 
cases  must  be  clothed  by  them.  Some  money,  too,  is  commonly 
given  to  the  master  for  teaching  him  his  trade.  ...  In  country  labor, 
on  the  contrar>',  the  laborer,  while  he  is  employed  about  the  easier, 
learns  the  more  difficult  parts  of  his  business,  and  his  own  labor  main- 
tains him  through  all  the  different  stages  of  his  employment. 

It  is  reasonable,  therefore,  that  in  Europe  the  wages  of  mechanics, 
artificers,  and  manufacturers,  should  be  somewhat  higher  than  those 
of  common  laborers.  .  .  .  Education  in  the  ingenious  arts  and  in 
the  hberal  professions,  is  still  more  tedious  and  expensive.  The 
pecuniary  recompense,  therefore,  of  painters  and  sculptors,  of  law- 
yers and  physicians,  ought  to  be  much  more  liberal:  and  it  is  so 
accordingly.  .  .  . 

Thirdly,  the  wages  of  labor  in  different  occupations  vary  with  Wages  vary 
the  constancy  or  inconstancy  of  employment.    Emplojonent  is  much   ^'"-^  ^^^ 
more  constant  in  some  trades  than  in  others.     In  the  greater  part   of  employ- 
of  manufactures,  a  journejTnan  may  be  pretty  sure  of  emplo}Tnent   °i^iit. 
almost  every  day  in  the  year  that  he  is  able  to  work.    A  mason  or 
bricklayer,  on  the  contrary,  can  work  neither  in  hard  frost  nor  in 
foul  weather,  and  his  employment  at  all  other  times  depends  upon 


128 


READINGS  IN  AMERICAN  DEMOCRACY 


the  occasional  call  of  his  customers.  He  is  Uable,  in  consequence, 
to  be  frequently  without  any.  What  he  earns,  therefore,  whUe  he 
is  employed,  must  not  only  maintain  him  while  he  is  idle,  but  make 
him  some  compensation  for  those  anxious  and  desponding  moments 
which  the  thought  of  so  precarious  a  situation  must  sometimes 
occasion.  [Thus  masons  and  bricklayers  earn  from  one  half  more 
to  double  the  wages  of  common  laborers.]  .  .  .  No  species  of  skilled 
labor,  however,  seems  more  easy  to  learn  than  that  of  masons  and 
bricklayers.  .  .  .  The  high  wages  of  those  workmen,  therefore,  are 
not  so  much  the  recompense  of  their  skill,  as  the  compensation  for 
the  inconstancy  of  their  employment.  .  .  . 


I 


The  busi- 
ness man 
stands  at 
the  hehn  of 
industry. 


Qualities 
necessary 
to  success 
in  business: 

Imagination 

and 

judgment. 


54.    Some  factors  influencing  profits  ^ 

We  have  briefly  considered  some  of  the  factors  which  influence 
the  payment  of  rent  to  the  land  owner,  interest  to  the  capitaHst, 
and  wages  to  the  laborer.  We  have,  last  of  all,  to  notice  some  of  the 
influences  which  help  to  determine  the  amount  of  profits  going  to 
the  entrepreneur  or  business  man.  The  business  man  receives  the 
proceeds  of  the  enteiprise  which  he  conducts,  and  in  turn  distributes 
the  shares  going  to  the  land-o\vner,  the  rapitahst  and  the  laborers. 
What  is  left,  over  and  above  any  other  expenses  which  he  may  have 
incurred,  he  keeps  as  profits.  Whether  profits  are  large  or  smaE 
will  depend  partly  upon  the  characteristics  of  the  business  man. 
The  quahties  of  a  successful  business  man  are  discussed  by  Professor 
Taussig  in  the  following  language: 

The  business  man  of  the  first  order  must  ha-^e  imagination  and 
judgment;  he  must  have  courage;  and  he  must  have  administrative 
capacity. 

Imagination  and  judgment,  —  these  are  needed  for  the  general- 
ship of  industry.  The  successful  business  man  must  be  able  to  fore- 
see possibilities,  to  estimate  with  sagacity  the  outcome  in  the  future. 
Especially  is  this  necessary  in  new  ventures;  and  it  is  in  new  ventures 
that  the  quahties  of  generalship  are  most  called  for,  and  the  greatest 
profits  reaped.     Countless  schemes  for  money-making  are  being  con- 


1  From  Frank  W.  Taussig,  Principles  of  Economics.    The  Macmillan  Co.,  igiS- 
Vol.  II,  pp.  163-166. 


DISTRIBUTING  THE   INCOME  OF  INDUSTRY  1 29 

stantly  urged  on  the  business  community,  most  of  them  visionary. 
Among  them  the  captain  of  industry  will  pick  out  those  that  really 
have  possibilities,  will  reshape  and  develop  them,  and  bring  them 
eventually  to  success.  Sometimes  he  errs;  there  could  be  no  great 
successes  unless  there  were  occasional  failures;  but  the  right  sort  of 
man  has  a  handsome  balance  of  profitable  ventures.  .  .  . 

Courage   and   some   degree   of    venturesomeness     are   obviously   Courage 
essential  to  the  successful  business  man:   so  much  follows  from  that   '^^^ 
assumption  of  risks  which  is  of  the  essence  of  his  doings.    But  courage 
and  imagination  and  personaUty  ^^all   not  avail  in  the  end  unless 
there  be  sound  judgment. 

Executive  ability  is  probably  less  rare  than  the  combination  of   executive 
judgment  with  imagination.     But  it  is  by  no  means  common.     It   ^"'"^y- 
calls,  on  the  one  hand,  for  intelligence  in  organization,  on  the  other 
hand  for  knowledge  of  men.     The  work  must  be  planned,  and  the 
right  man  assigned  to  each  sort  of  work.     The  selection  of  eflicient 
subordinates  is  of  the  first  importance.  .  .  . 

A  business  man  almost  always  has  to  do  with  the  physics  and 
mechanics  of  industry.  Every  director  of  large  enterprises  must 
choose  between  competing  mechanical  dev  ces,  must  watch  the  course 
of  invention,  must  be  in  the  fore  with  improvements.  ...  In  select- 
ing among  the  numberless  projects  constantly  pressed  on  his  attention, 
the  business  man  exercises  one  of  his  most  characteristic  functions. 

Too  much  stress  must  not  be  laid  on  any  enumeration  of  the  busi-   But  no  one 

ness  man's  qualities.    All  sorts  and  conditions  of  men  prove  to  have     ,^  opens 

_  the  door  to 

the  qualities  needed  for  pecuniary  success,  —  the  cautious  and  the   success. 

daring,  the  sober  and  the  enthusiastic,  the  loquacious  and  the  taci- 
turn, those  given  to  detail  and  those  negligent  of  detail.  The  differ- 
ent aptitudes  appear  in  every  kind  of  combination.  .  .  .  No  one  key 
opens  the  doors  to  success.  .  .  .  The  variety  among  the  men  who 
prove  to  have  the  money-making  capacity  is  a  standing  cause  of 
wonder. 

Among  all  these  different  sorts  of  persons,  a  process  very  like   The  proc- 

natural  selection  is  at  work.    To  predict  who  has  in  him  the  qualities   ^^f , 

^  trial  among 

for  success  is  much  harder  than  is  prediction  with  regard  to  most   business 
occupations.     The  aptitudes  and  abilities  which  must  be  possessed   "^™- 
by  one  who  would  succeed  in  law,  in  medicine,  in  engineering,  in 


I30  READINGS  IN  AMERICAN  DEMOCRACY 

teaching,  show  themselves  at  a  comparatively  early  age,  and  a 
friendly  observer  can  often  give  good  advice  as  to  the  choice  of  these 
professions.  But  the  qualities  that  make  for  success  in  business 
management  not  infrequently  develop  late,  or  at  least  show  them- 
selves late  and  only  under  actual  trial.  Surprises  are  more  common 
in  this  walk  of  life  than  in  any  other.  A  constant  process  of  trial 
is  going  on.  Those  who  have  the  requisites  for  success  come  to 
the  fore,  those  who  lack  in  some  essential  drop  to  the  rear.  .  .  . 

Questions  on  the  foregoing  Readings 

1.  What  is  the  most  difficult  and  important   problem  in  the  field  of 

economics? 

2.  Why  was  it  necessary  for  the  people  who  lived  on  farms  in  colonial 

times  to  be  self-sufficing? 

3.  Name  three  classes  of  articles  which  were  produced  by  the  farmer 

and  his  family  in  colonial  times. 

4.  Describe  briefly  the  making  of  clothing  on  the  colonial  farm. 

5.  Give  two  reasons  why  the  problem  of  distribution  was  not  im- 

portant in  colonial  times. 

6.  What,  in  brief,  is  the  relation  of  the  division  of  labor  to  the  problem 

of  distribution? 

7.  What  is   Professor   Carver's   definition  of   the  problem  of   distri- 

bution? 

8.  What  are  the  two  kinds  of  division  of  labor  mentioned  by  Professor 

Carver? 

9.  In  connection  with  which  of  these  is   the  problem  of  distribution 

most  important? 

10.  Into  how   many  classes  is  it  customary  to  classify  those  who  take 

part  in  the  contemporaneous  division  of  labor? 

11.  Define  rent. 

12.  Explain  the  importance  of  fertility  in  agricultural  land. 

13.  Explain  the  importance  of  location  with  respect  to  land  values. 

14.  What  was  one  reason  why  some  people  formerly  objected  to  the 

payment  of  interest? 

15.  What  is  the   most  familiar  ground  for  differences  in  the  return 

from  different  investments? 

16.  What  is  the  relation  of  interest  to  the  danger  of  accident? 

17.  Explain  why  the  interest  rate  is  different  in  different  sections  of 

the  United  States. 

18.  Why  is  the  question  of   wages  considered  by  some   persons  as 

being  of  more  social  importance  than  the  question  of  rent  or 
interest? 


DISTRIBUTING  THE  INCOME  OF  INDUSTRY  131 

19.  What  examples  does  Adam  Smith  give  to  show  that  wages  may 

vary  with  the  ease  or  hardship,  cleanliness  or  dirtiness,  of  work? 

20.  Explain  the  principle  upon  which  is  founded   the   difference  be- 

tween the  wages  of  skilled  labor  and  those  of  common  labor. 

21.  What  does  Adam  Smith  mean  by  saying  that  the  wages  of  labor 

in  different  occupations  vary  with  the  constancy  or  inconstancy 
of  employment? 

22.  Explain  the  relation  of  imagination  and  judgment    to  success  in 

business. 

23.  Is  executive  ability  common  or  uncommon  in  business?     Explain. 

24.  To  what  extent  is  a  business  man  concerned  with  the   physics  and 

mechanics  of  industry? 

25.  Why  should  we  not  place  too  much  stress  upon   any  enumeration 

of  the  business  man's  qualities? 


CHAPTER   X 


BASES    OF   THE    CAPITALISTIC    SYSTEM 


Nature  of 
the  capi- 
talistic 
lystem. 


The  begin- 
nings of 
private 
property. 


Extension 
of  property 
rights. 


55.   The  evolution  of  private  property  ^ 

We  are  accustomed  to  speak  of  capitalism  as  constituting  an 
industrial  "system."  The  term  "system"  is  thus  applied  because 
capitalism  not  only  exhibits  a  considerable  regularity  of  outline,  but 
in  addition  shows  a  strong  tendency  to  function  in  conformity  with 
the  basic  laws  of  economics.  The  capitalistic  system,  as  it  may 
be  called,  is  based  upon  certain  fundamental  institutions  and  prin- 
ciples. Of  these  bases  of  capitaUsm,  the  right  of  private  property  is 
one  of  the  oldest  and  most  important.  The  evolution  of  private 
property  is  described  by  Professor  Gide  in  the  following  passage: 

At  the  present  time  all  wealth  that  can  be  appropriated  —  which 
excludes  the  air,  the  sea,  running  w^aters  —  may  become  the  object 
of  private  property  rights.  In  civilized  communities  almost  all 
wealth  constitutes  some  one's  private  property.  This,  however, 
has  not  always  been  the  case.  There  was  a  time  when  the  scope  of 
private  property  was  confined  to  a  few  objects.  There  is  no  doubt 
that  at  first  it  comprised  only  those  kinds  of  wealth  that  in  civilized 
countries  have  long  ago  ceased  to  be  the  object  of  property  rights, 
namely,  slaves  and  women.  It  also  included  objects  of  immediate 
personal  use,  —  such  as  jewels,  weapons,  horses,  —  the  individual 
ownership  of  which  was  evidenced  by  the  custom  of  burying  them 
with  their  owner.  .  .  . 

Later,  property  came  to  include  the  home,  —  not  as  individual 
property,  but  as  family  property,  —  because  the  home  was  the 
abiding  place  of  the  household  god-s,  and  these  gods  belonged  to  the 
family.     Still  later,  it  extended  to  a  portion  of  the  land.  .  .  . 

Different  kinds  of  property  have  successively  played  a  dominant 


1  From  Charles  Gide,  Principles  of  Political  Economy.     D.  C.  Heath  &  Co., 
1903;  PP-  430-436. 

132 


I 

I 


BASES  OF  THE   CAPITALISTIC   SYSTEM  133 

part  in  the  history  of  mankind.  Among  pastoral  tribes,  cattle  is 
the  most  important  property;  under  feudalism,  land;  and  in  the 
era  of  steam,  coal  mines.  Private  property  has,  in  our  own  times, 
been  extended  to  a  multitude  of  new  objects  of  which  our  ancestors 
knew  nothing.  Among  these  are:  (i)  So-called  invisible  property; 
that  is,  credit  claims  or  shares  in  the  stock  of  industrial  enterprises, 
represented  by  mere  pieces  of  paper  that  can  be  slipped  into  a  pocket- 
book,  and  which  to-day  constitute  a  most  convenient  and  desirable 
kind  of  wealth;  (2)  works  of  literature,  science,  and  art,  which  have 
become  the  object  of  property  rights  under  the  name  of  copyrights 
and  patents.  .  .  . 
So  far  as  we  can  conjecture,  the  order  in  which  the  right  of  private  Order  in 

property  successively  acquired  its  essential  attributes  was  as  follows:   ■^^'?,^  *^^    , 

attributes  of 

(i)  Probably  the  first  property  right  was  that  of  exploiting  one's   private  prop- 
possessions,  that  is,  making  them  yield  something  for  the  owner   f^*^  ^^^ 

have  been 

by  means  of  the  labor  of  others,  —  formerly  by  the  labor  of  slaves,   acquired: 

and  subsequently  by  the  labor  of  free  wage- workers  (employees).  .  .  .   The  right 

\       r-     ^        /  ^Q  exploit, 

(2)  The  right  of  gift,  at  least  in  the  case  of  movable  objects,  seems  the  right 
to  have  been  one  of  the  oldest  ways  of  making  use  of  wealth  and  °^  ^^^^' 
anterior  even  to  the  right  to  sell.  ... 

(3)  The  rights  to  sell  and  to  rent  seem  to  have  sprung  up  much  the  right 
later.  In  the  fourth  century  before  Christ,  Aristotle  declared  that  ^°  ^'^'^  ""^ 
these  were  necessary  attributes  of  the  right  of  property;    but    he 

does  not  seem  to  imply  that  they  were  generally  recognized  at  that 
time.  In  fact,  there  are  manj'  reasons  why  they  should  not  have  been 
recognized.  As  long  as  property  was  vested  in  the  family  and  bore 
the  imprint  of  religious  consecration  —  and  this  was  the  marked 
characteristic  of  antique  property  —  the  transfer  of  ownership  was 
not  sanctioned;  at  all  events,  it  constituted  an  act  of  impiety  on  the 
part  of  any  member  of  the  family.  Moreover,  exchange  and  the 
division  of  labor  did  not  yet  exist;  each  family  sufficed  unto  itself; 
movable  objects  of  property  were  few  in  number.  Hence  every  one 
kept  these  objects  permanently;  sometimes  they  were  buried  \vith 
the  owner.  Under  these  circumstances,  sale  could  be  regarded  only 
as  an  exceptional  and  abnormal  act.  Accordingly,  when  sale  is 
first  introduced,  we  find  it  solemnized  by  extraordinary  ceremonies, 
and  partaking  of  the  nature  of  a  public  event.  .  .  . 


134 


READINGS  IN  AMERICAN  DEMOCRACY 


and  the 
right  to 
bequeath. 


(4)  The  right  to  bequeath,  which  has  always  been  regarded  as 
the  most  important  attribute  and  the  crowning  feature  of  the  right 
of  property.  .  .  .  [This  attribute]  was  even  slower  in  becoming  a 
part  of  the  right  of  property.  This  right,  moreover,  came  into  con- 
flict with  the  right  of  family  inheritability,  to  which  we  have  already 
referred;  and  it  obviously  could  not  have  been  recognized  until 
property  had  entirely  lost  its  family  character  and  become  thoroughly 
individual.  There  is  reason  to  believe  that  even  at  Rome,  where 
individual  property  was  ultimately  so  vigorously  developed,  the 
father  of  the  family  did  not  have  the  right  to  bequeath  until  the 
establishment  of  the  Law  of  the  Twelve  Tables  (450  B.C.).  .  .  . 
I  When  the  right  of  property  has  acquired  these  four  characteristics, 
it  may  be  regarded  as  complete.  .  .  . 


The  con- 
tract and 
its  purposes. 


Contracts 
may  be 
oral  or 
written. 


56.   Types  of  business  contracts  ^ 

Another  important  basis  of  capitalism  is  the  obligation  to  fulfill 
contracts  entered  into  voluntarily  and  in  legal  form.  The  complex 
division  of  labor  has  obliged  the  average  individual  to  rely  upon 
others  for  numerous  goods  and  services  which  he  does  not  find  it 
possible  or  economical  to  supply  for  himself.  Now,  if  individuals 
are  to  rely  upon  one  another,  it  often  becomes  necessary  for  them 
to  enter  into  definite  agreements  or  contracts.  The  chief  purposes 
of  the  contract  are  to  render  clear  and  definite  the  terms  of  such 
agreements,  and  to  protect  responsible  persons  against  the  careless- 
ness or  dishonesty  of  the  other  parties  to  the  contract.  Because  of 
the  vital  importance  of  contracts,  all  civilized  countries  have  enacted 
laws  which  oblige  persons  to  live  up  to  the  terms  of  contracts  which 
they  have  agreed  to  voluntarily  and  in  legal  form.  The  following 
excerpts  from  a  textbook  on  business  law  explains  some  of  the  more 
brief  and  simple  forms  of  contracts: 

In  ordinary  business,  most  contracts  may  be  oral  in  form,  that  is, 
by  word  of  mouth.  Such  contracts  are  just  as  binding  in  law  as  if 
written  in  full.  But  with  oral  contracts  mistakes  are  common  and 
misunderstandings  are  numerous.     They  are  always  more  or  less 

>  From  Coleman  Hall  Bush,  Applied  Business  Law.  Henry  Holt  &  Co.,  1920; 
pp.  120,  121-125. 


BASES   OF  THE   CAPITALISTIC   SYSTEM  135 

difificult  to  prove  in  court.  Therefore,  to  avoid  misunderstandings 
and  to  make  proof  certain,  all  important  contracts  should,  whether 
required  by  law  or  not,  be  in  writing.  .  .  . 

The  first  essential  of  any  contract  is  the  presence  of  competent  The  six 
parties,  and  the  second  is  the  mutual  agreement  of  these  parties.  <^ssentials  of 
Agreement  arises  from  a  meeting  of  the  minds,  or  an  assent  to  the 
same  thing  and  in  the  same  sense,  and  it  must  be  with  an  intention 
of  being  bound  by  the  obligation  of  the  contract.  The  third  essential 
is  that  the  agreement  must  be  free  from  fraud,  mistake,  or  duress. 
Fourth,  it  must  be  based  upon  sufficient  cause,  price,  or  considera- 
tion, (fifth)  to  accomplish  a  lawful  purpose.  The  sixth  and  last 
essential  of  a  written  contract  is  that  it  must  be  clearly  stated.  ... 

Contracts  arise  from  agreement,  and  agreements  originate  in  some  How  con- 
form of  offer  and  acceptance.  In  oral  contracts  the  offer  and  accept-  ^^'^^^^  ^"^^• 
ance  are  by  word  of  mouth;  after  the  agreement  is  reached  it  may 
be  reduced  to  writing,  thus  forming  a  written  contract.  Agreements 
may  also  be  reached  by  correspondence.  Where  the  negotiations 
are  in  this  form,  the  agreement  of  the  parties  and  the  written  form 
of  the  contract  originate  at  the  same  time.  A  written  ofifer  followed 
by  an  acceptance  in  writing  .  .  .  results  in  a  contract ;  these  writings 
constitute  the  evidence  of  the  agreement,  and  are,  in  fact,  the  written 
contract. 


Examples  —  /.   Oral  offer  and  oral  acceptance  An  oral 

"I  will  sell  you  that  cow  for  $500,  and  dehver  her  at  your  place 
not  later  than  May  3d,"  said  0  to  B,  as  he  pointed  out  a  cow  in  his 
dairy  herd. 

"Agreed,"  replied  B,  "I  will  take  her  at  that  price,  and  make 
payment  on  delivery." 

This  oral  agreement  may  be  reduced  to  writing;   if  so,  it  will  be  The  oral 

somewhat  as  follows:  contract  re- 

duced to 

"  THIS  AGREEMENT  between  0  and  B,  both  of  Cowlitz,  Oregon,    writing, 
witnesseth: 

"  That  O,  in  consideration  of  the  agreement  of  B,  contracts  to  sell 
and  deliver  to  B  one  full-bred  Jersey  dairy  cow,  registered  and  known 
as  'Jersey  Lil,'  the  delivery  to  be  made  on  or  before  May  3d,  1919, 
at  the  dairy  farm  of  B. 


136 


READINGS  IN  AMERICAN  DEMOCRACY 


An  agree- 
ment 

reached  by 
means  of 
letters. 


"  That  in  consideration  of  the  agreement  of  O,  B  agrees  to  pay  to 
O  the  sum  of  Five  Hundred  Dollars,  at  the  time  of  the  delivery  of  the 
above  described  cow,  this  sum  being  in  full  payment  of  the  purchase 
price. 

"IN  WITNESS  WHEREOF,  we  have  hereunto  subscribed  our 
names,  this  4th  day  of  February,  19 19." 

"  (Signed) O " 

"  (Signed) B " 


2.  Agreement  reached  by  means  of  letters 

Offer 

Troy,  Minnesota,  February  3,  1919. 
John  Doe, 

Home  Place. 
Dear  Sir: 

I  will  sell  you  one  hundred  bushels  of  select  seed  wheat,  No.  i  Dura, 
delivered  at  your  farm  for  four  dollars  a  bushel. 

Upon  receipt  of  your  letter  of  acceptance,  I  will  consider  the  con- 
tract closed,  and  deliver  as  you  may  direct. 

Yours  truly, 

Richard  Roe 

Acceptance 

Home  Place,  February  4,  1919. 
Richard  Roe, 

Troy,  Minn. 
Dear  Sir: 

I  accept  your  offer  of  one  hundred  bushels  of  select  seed  wheat, 
No.  I  Dura,  at  four  dollars  a  bushel,  to  be  delivered  at  my  place. 
March  4,  1919. 

Yours  very  truly, 

John  Doe 

.  .  .  The  foregoing  letters  constitute  a  valid  written  contract, 
and  taken  together,  contain  all  the  essential  elements  of  a  valid 
contract. 


The  basis 
of  compe- 
tition. 


57.   The  forms  of  competition  ^ 

It  has  often  been  pointed  out  that  desirable  goods  and  services 

are  scarce,  that  is  to  say,  their  supply  is  small  relatively  to  the  de- 

'  From  Thomas  Nixon  Carver,  Principles  of  Political  Economy.    Ginn  &  Co., 


1919;  pp.  37-42. 


BASES  OF  THE   CAPITALISTIC   SYSTEM 


137 


mand  for  them.  And  because  there  are  not  enough  goods  and  services 
to  go  around,  men  compete  for  them.  Professor  Carver  has  enumer- 
ated the  various  ways  in  which  men  may  compete  with  one  another, 
and  has  pointed  out  that  capitalism  attempts  to  shunt  individuals 
into  the  most  useful  form  of  competition,  i.e.  productive  competition. 
The  relation  of  this  to  other  forms  of  competition  he  explains  in  the 
following  passage: 

The  forms  of  conflict,  or  the  methods  of  struggling  for  existence,    Professor 
may  be  classified  as  foUows: 


Methods  of 
Struggling  " 

FOR 

Existence 


Destructive 


Deceptive  < 


Persuasive  ■ 


Productive 


War 

Robbery 

Dueling 

Sabotage 

Brawling 
Thieving 
Swindling 

Adulteration  of  goods 
False  advertising 

{Courting  for  royal  favors 
Courting  the  sovereign  people 
Campaigning  for  office 
/  Polite  social  intercourse 
\  Courting 

J  Advertising 
\  Salesmanship 
/  "Leaving  it  to  the  crowd" 
\  Litigation  before  courts 

Rivalry  in  producing  goods 
Rivalry  in  rendering  service 


Erotic  < 
Commercial ' 
Judicial  ■ 


...  It  will  be  apparent  to  anyone  who  vdll  study  the  diagram 
that  among  animals  the  destructive  and  deceptive  methods  are  the 
characteristic  forms  of  struggle.  They  kill,  maim,  injure,  rob  and 
deceive  one  another  with  no  moral  or  legal  restraints.  They  may 
sometimes  rise  to  the  level  of  persuasion,  as  in  the  courting  process, 
but  never  to  the  level  of  production;  that  is,  no  animal  ever  tries 
to  beat  its  rival  by  producing  a  larger  or  better  product  or  rendering 
a  greater  or  better  service.  Among  human  beings  who  have  no  moral 
sense,  and  who  are  unrestrained  by  law  and  justice,  the  destructive 
and  deceptive  methods  of  struggle  will  be  followed,  as  well  as  the 


Carver's 
diagram 
of  the 
forms  of 
conflict. 


Competi- 
tion among 
the  lower 
animals 
compared 
with  com- 
petition 
among  men. 


138 


READINGS  IN  AMERICAN  DEMOCRACY 


Significance 
of  compe- 
tition. 


Friendly 
competition 
is  possible. 


persuasive  and  productive  methods;  but  the  destructive  and  decep- 
tive methods  are  precisely  the  things  that  morals  and  laws  are  designed 
to  prevent.  In  any  civilization  worthy  of  the  name,  and  under  any 
government  worthy  to  stand  overnight,  men  are  actually  restrained 
by  their  own  moral  feelings,  by  the  respect  for  the  good  opinions 
of  their  fellows,  and  by  the  fear  of  legal  penalties,  from  attempting 
to  promote  their  own  interests  by  destruction  or  deception.  .  .  . 

During  the  entire  life  of  man  on  this  planet  he  has  had  to  struggle 
in  one  way  or  another.  The  reason  why  we  are  here  to-day  is  be- 
cause our  ancestors  were  successful  in  their  struggles.  .  .  .  One 
reason  why  they  struggled  so  successfully  was  that  they  were  valiant 
enough  to  wage  their  fight  with  vigor  and  with  spirit.  That  spirit 
we  have  inherited  to  such  an  extent  that  we  cannot  even  amuse  our- 
selves without  some  kind  of  competition  or  struggle.  It  is  as  the 
breath  of  life  to  our  nostrils.  It  will  be  well  for  us  if  we  can  harness 
this  spirit  to  productive  work  rather  than  allow  it  to  waste  itself 
in  destruction,  deception,  or  even  in  some  fruitless  kinds  of  persuasion. 
The  nation  which  succeeds  best  in  so  harnessing  this  spirit  to  pro- 
duction is  the  nation  which  should  normally  grow  rapidly  in  wealth, 
prosperity,  and  power.  .  .  . 

In  assuming  the  universality  and  permanence  of  competition  in 
some  form  it  is  not  necessary  to  exclude  such  things  as  love,  friend- 
ship, neighborhness,  and  cooperation.  Competitors  in  a  friendly  game 
may  be  none  the  less  friendly  because  they  are  competing.  It  is  only 
when  they  care  more  for  victory  or  the  prize  of  victory  than  they 
do  for  friendship  that  there  is  any  conflict  between  competition  and 
friendship.  The  cure  for  this,  however,  is  not  the  abolition  of  com- 
petition, but  the  learning  to  care  for  the  right  things  and  to  evaluate 
things  properly.  .  .  . 


The  growth 
of  economic 
freedom. 


58.   Blinds  of  economic  freedom  ^ 

The  citizens  of  modern  industrial  countries  are  so  accustomed  to 
a  large  measure  of  economic  freedom  that  this  type  of  liberty  is 
generally  taken  as  a  matter  of  course.  And  yet  it  is  only  a  few 
centuries  ago  that  business  was  impeded  and  repressed  by  numerous 


*  From  Edwin  R.  A.  Seligman,  Principles  of  Economics. 
&  Co.,  1905;  pp.  165-170. 


Longmans,   Green 


BASES  OF  THE  CAPITALISTIC   SYSTEM  139 

laws  and  regulations.    In  the  Middle  Ages,  for  example,  the  industrial 

activities  of  the  individual  were  relatively  restricted.     After  that 

period,  however,  economic  freedom  developed  rapidly,  until  to-day 

it  is  one  of  the  dominant  characteristics  of  capitaUstic  industry. 

The  various  kinds  of  economic  freedom  are  described  by  Professor 

SeUgman  in  the  following  language: 

(i)  The  first  and  most  obvious  form  of  freedom  is  that  of  marriage  The  free- 

and  divorce.  .  .  .  Freedom  of  marriage  especially  is  a  product  of  ^om  of 

.     ,.r         T-.         •     •  marriage 

the  modern  economic  life.     Restrictions  on  the  right  of  marriage   and  divorce. 

were  in  the  Middle  Ages  an  attribute  of  personal  subjection,  and  were 
utihzed  as  fiscal  resources  by  the  lord.  Even  with  the  advent  of 
physical  freedom,  however,  we  find  the  right  of  marriage  dependent 
on  certain  property  quahfications,  as  in  Southern  Germany  at  the 
beginning  of  the  nineteenth  century.  This  also  was  merely  a  survival 
of  aristocratic  traditions,  —  Uke  the  still  existing  property  quahfica- 
tions for  marriage  in  the  case  of  army  officers  in  continental 
Europe.  ... 

(2)  Next  we  have  freedom  of  movement.    In  the  Middle  Ages  the   Freedom  of 
right  of  internal  migration  was  often  restricted.     Under  the  settle-   "^o^'^ni^^t. 
ment  laws  in  England,  for  instance,  it  was  virtually  impossible  for 

a  workman  to  leave  his  native  parish.  In  modern  times  the  growth 
of  freedom  has  brought  the  right  not  only  of  internal  but  of  inter- 
national migration.  ... 

(3)  We  come  next  to  the  freedom  of  occupation.     The  right  of   Freedom  of 
choosing  one's  profession  was  in  former  times  hedged  in  by  all  manner   occupation, 
of  barriers.    At  its  worst  the  system  of  caste  and  custom  prevented 
progress  because  it  put  men  into  vocations  for  which  they  were  not 

fitted.  Freedom  of  occupation  insures  as  far  as  possible  the  right 
man  for  the  right  place,  and  this  leads  to  enhanced  production  and 
better  distribution.  The  only  restriction  which  modern  society 
permits  is  the  evidence  of  fitness,  in  those  occupations  where  in- 
competence would  imply  irresponsibility  and  involve  injury  to  others 
as  well  as  to  oneself.  The  certificates  required  from  doctors,  dentists, 
engineers,  plumbers,  pilots  and  the  like  are  not  a  hindrance,  but  an 
aid,  to  true  hberty.  ... 

(4)  Another  kind  of  freedom  is  the  freedom  of  association.    The  Freedom  of 
chief  forms  of  association  for  economic  purposes  are  combinations  association. 


I40  READINGS  IN  AJMERICAN  DEMOCRACY 

of  labor  and  combinations  of  capital.  .  .  .  Even  after  the  right  of 
poUtical  and  religious  association  had  been  won,  however,  combina- 
tions of  labor  were  prohibited.  Under  the  modern  factory  system 
such  combinations  have  assumed  the  form  of  trade  unions.  It 
was  not  until  1824  in  England,  and  considerably  later  in  America 
and  continental  Europe,  that  the  prohibition  was  removed.  The 
legitimacy  of  union,  as  such,  is  now  accepted  because  it  is  recognized 
that  it  tends  to  secure  the  real  freedom  of  the  laborer.  ...  In  the 
same  way  the  right  of  free  association  of  capital  in  the  form  of  cor- 
porations and  other  combinations  has  been  acquired  chiefly  in  the  past 
half-century.  .  .  . 
Freedom  of  (5)  The  fifth  category,   freedom  of  consumption,   needs  only  a 

consumption.  ^^^^  _  _  _  [When  in  modern  society]  it  becomes  desirable  in  the 
interests  of  the  pubhc  health  or  safety  to  prohibit  the  use  of  certam 
commodities,  like  over-ripe  fruit,  or  infected  meat,  or  opium,  the 
end  is  attained  far  better  by  a  prohibition  of  sale,  under  the  police 
power  of  the  state,  than  by  a  restriction  of  consumption. 
Freedom  of  (6)  We  come,  sixthly,  to  freedom  of  production,  including  freedom 

pro  uction.  ^^  contract  and  enterprise.  .  .  .  The  complex  requirements  of  modern 
life  have  necessitated  a  governmental  regulation  of  many  business 
enterprises  in  behalf  of  producers,  of  consumers,  of  investors  or  of 
the  general  public.  The  difference  between  medieval  and  modern 
interference  is  to  be  found  chiefly  in  the  fact  that  the  one  sought  to 
prevent  competition,  while  the  other  endeavors  to  enlarge  its  domain 
and  to  raise  its  level.  The  only  exception  to  the  rule  that  rational 
modern  interference  is  not  designed  to  prevent  competition  is  found 
in  those  few  cases  where  competition  itself  becomes  wasteful  and 
inefficient.  The  modern  aim,  however,  is  always  to  increase  Uberty 
through  the  attainment  of  equaUty  and  responsibihty.  Factory  laws 
give  the  operatives  a  fair  chance;  railway  regulation  attempts  to 
secure  equal  treatment  of  shippers;  supervision  of  banks,  insurance 
companies  and  other  corporations  is  designed  to  enforce  financial 
responsibility.  In  all  these  cases  interference  is  justified  only  as  lead- 
ing to  a  surer  and  greater  general  liberty.  We  have  to  deal  with  the 
positive,  not  the  negative,  conception. 
Freedom  of  (?)  Finally,  we  have  freedom  of  trade.    This  is  virtually  included 

under  the  last  head,  since  trade  is  a  species  of  production.  .  .  . 


trade. 


BASES  OF  THE   CAPITALISTIC   SYSTEM  141 

59.   Production  in  anticipation  of  demand  ^ 

Men  engage  in  economic  production  in  order  to  satisfy  human  Production 
wants,  that  is  to  say,  because  they  anticipate  that  the  goods  being  ^nticipates 
produced  will  later  be  in  demand,  either  by  themselves  or  by  others. 
Even  among  savages,  production  pays  attention  to  the  probable 
future  demand,  but  it  is  in  modern  industry  that  this  anticipation 
of  wants  assumes  its  greatest  significance.  This  is  discussed  by 
Professor  Clay  as  follows: 

We  enter  a  shop,  pay  ten  shillings,  and  a  shirt  is  given  to  us.  The  An  example 
shirt  is  the  product  of  the  labor  of  hundreds  of  people,  the  materials 
of  which  it  is  made  were  drawn  from  two  or  three  continents,  the 
machinery  required  to  make  it  took  months  to  construct;  yet  we  get 
the  shirt  without  waiting.  For  us  to  get  it  the  shopkeeper  must  have 
stocked  shirts,  for  him  to  do  so  the  wholesaler  with  whom  he  deals 
must  have  stocked  shirts,  for  the  wholesaler  to  do  so  some  one  must 
have  manufactured  shirts,  some  one  have  manufactured  the  flannel  . 
from  which  they  are  made  and  the  thread  with  which  they  are  sewn, 
and  further  back  still,  some  one  must  have  made  the  machinery  with 
which  all  these  manufacturers  work.  That  is  to  say,  in  anticipation 
of  our  want  of  a  shirt,  a  complex  organization  must  have  been 
at  work  for  months  and  perhaps  years  before  we  announced  our 
want.  .  .  . 

We  bought  a  woollen  shirt;   suppose  we  had  wanted  a  cotton  one.   The 

The  retailer  would  probably  have  been  able  to  supply  us.     The   '^'^^"^P'^ 
^  ■'  t-f  J  extended. 

demand  for  the  different  kinds  of  shirts  is  fairly  steady,  and  it  is  the 

retailer's  business  to  know  what  to  stock.     But  multiply  our  case 

a  thousandfold,  and  suppose  he  has  not  anticipated  our  wants  so 

exactly.    W^hat  is  the  result  then?    First,  he  has  woollen  shirts  which 

are  not  wanted,  and  all  the  series  of  people  behind  the  counter,  who 

have  been  contributing  to  the  making  of  his  woollen  shirts,  have 

been  making  something  which,  as  it  happens,  is  not  the  thing  wanted. 

Secondly,  the  shopkeeper,  being  unable  to  sell  woollen  shirts,  orders 

fewer,  and  this  check  to  the  demand  for  woollen  shirts  is  transmitted 

right  through  to  the  people  who  grow  wool  and  make  wooUen-working 

machinery. 

*  From  Henry  Clay,  Economics  for  the  General  Reader.    The  Macmillan  Co., 
igi?;  pp.  68-71. 


142 


READINGS  IN  AMERICAN  DEMOCRACY 


Why  pro- 
duction in 
anticipation 
of  demand 
is  inevitable. 


Tiie  process 
of  anticipat- 
ing demand 
involves 
risk. 


This  risk 
borne 
chiefly  by 
the  entre- 
preneur. 


Meanwhile,  we,  in  our  determination  to  get  a  cotton  shirt,  leave 
the  shop  and  go  elsewhere  for  it,  and  the  shopkeeper  telegraphs  to 
his  wholesaler  for  a  supply  of  cotton  shirts  at  the  same  moment  as 
we  at  another  shop  are  asking  for  a  cotton  shirt.  Imagine  a  thousand 
people  acting  as  we  are  acting,  and  the  people  whose  business  it  is 
to  supply  cotton  shirts  will  get  the  impression  that  there  is  going  to 
be  an  increased  demand  for  cotton  shirts  and  will  place  their  orders 
accordingly.  .  .  . 

Production  is  carried  on  in  anticipation  of  demand.  This  is  in- 
evitable if  we  are  to  avail  ourselves  of  the  economies  of  speciaHzation, 
since  specialization  takes  time.  When  we  purchased  the  woollen 
shirt  we  were  getting  goods  from  the  Austrahan  sheep  farmer,  from 
the  American  cotton  grower,  from  a  whole  host  of  machine-makers, 
builders,  transport  workers  and  others,  who  could  not  possibly  have 
known  of  our  existence  nor  anticipated  for  themselves  what  we 
should  want. 

Again,  all  the  processes  of  manufacture  must  be  carried  on  simul- 
taneously. The  growing  of  the  wool,  the  spinning,  the  weaving,  the 
shirt-making,  and  the  distributing  by  merchants  and  shopkeepers 
must  be  going  on  continuously  and  simultaneously,  or  a  large  number 
of  people  and.  a  large  amount  of  capital  would  be  unemployed.  .  .  . 

Production  is  carried  on  ahead  of  demand  on  an  estimate  of  it. 
Working  on  an  estimate  necessarily  involves  the  risk  of  loss  when 
a  wrong  estimate  has  been  made,  and  every  class  in  the  community 
has  to  some  extent  to  meet  this  risk  and  bear  a  share  of  this  loss. 
The  consumer  suffers  because  he  does  not  get  what  he  wants,  or  has 
to  pay  a  high  price  for  what  he  wants;  the  worker  suffers  because 
his  specialized  skill  may  suddenly  lose  its  value. 

But  the  chief  risk  is  borne  by  the  class  of  organizers.  .  .  .  They 
take  the  first  and  chief  loss  if  something  is  made  which  turns  out  not 
to  be  wanted.  This  is  so  because  they  have  paid  for  the  making  of 
the  thing  before  they  could  find  out  that  it  is  not  wanted;  in  return, 
they  take  the  profit  if  their  estimate  of  what  is  wanted  turns  out  to 
be  correct,  so  that  they  are  able  to  offer  the  public  just  what  it  wants 
and  is  willing  to  pay  for  it  handsomely.  .  .  .  The  French  term  for 
the  person  who  [thus]  organizes  production  \js]  entrepreneur,  which 
implies  tmdertaking  production  for  the  market  with  its  attendant  risks. 


BASES  OF  THE   CAPITALISTIC   SYSTEM  143 

60.   The  inequality  of  wealth  ' 

The  business  of  the  world  is  carried  on  chiefly  under  the  capitalistic   Capitalistic 

system.    The  outstanding  merit  of  this  system  is  that  it  has  greatly   development 

.  has  been 

increased  the  amount  of  consumable  goods  in  existence,  and  at  the   accompanied 

same  time  has  markedly  decreased  the  cost  of  production  of  the   1^^  ^^^,. 

mequahty 
necessities  of  hfe.     But  the  development  of  the  capitalistic  system   of  wealth. 

has  Ukewise  brought  with  it  serious  evils.    Of  these  evils  the  most 

important,  at  least  from  the  social  standpoint,  is  the  inequaHty  of 

w-ealth.     In  the  following  passage  Professor  Taussig  has  attempted 

to   siunmarize  this  important   but   difficult   subject: 

The  overshadowing  fact  in  the  distribution  of  property  and  in-   Questions 

come  is  inequality.     How  great  is  the  inequahty,  and  what  are  its   ^"  ^^     , 

answered. 

causes? 

In  view  of  the  enormous  interest  of  this  topic,  the  meagemess  of   Lack  of 
our  information  is  surprising.    Statistics  based  on  income  tax  returns   *^^^^" 
supply  data  that  may  be  considered  accurate;   but  they  exist  for  a 
few  countries  only.  .  .  .  For  most  countries,  including  the  United 
States,  we  have  no  precise  information  whatever. 

Nevertheless,  famihar  observation,  supported  and  supplemented   Distribution 

by  such  figures  as  we  have,  suffices  not  only  to  assure  us  of  the  fact    ,.f^  ^        , 
•^  *=  '     .  ^  hke  that,  of 

of  inequality,  but  to  show  its  general  range  and  character.  We  an  inverted 
know  that  the  number  of  the  rich  is  very  small;  that  the  number  P^^  '^''P- 
of  persons  who  are  well-to-do  and  comfortable,  though  considerably 
larger,  is  stiU  small;  and  that  the  persons  with  slender  incomes  are 
the  most  numerous  of  all.  With  only  one  exception  of  importance  .  .  . 
distribution,  both  of  wealth  and  income,  has  a  form  roughly  pyramidal. 
To  put  the  analogy  more  carefully,  its  form  is  like  that  of  an  inverted 
peg  top,  —  the  lowest  range  small,  then  a  ver}--  large  extension,  and 
thereafter  steady  shrinkage  as  the  highest  point  is  approached.  .  .  . 

Such  are  the  broad  facts  as  to  inequaHty.     How  are  they  to  be 
explained?  .  .  . 

The  causes  of  inequahty  are  reducible  to  two,  —  inborn  differences  The  two 
in  gifts,  and  the  maintenance  of  acquired  advantages  through  environ-  [^^^  ^^^j^^^ . 
ment  and  through  the  inheritance  of  property.     The  origin  of  in- 

*  From  Frank  W.  Taussig,  Principles  of  Economics.    The  Macmillan  Co.,  1915. 
Vol.  u,  pp.  238,  246-24S. 


144 


READINGS  IN  AMERICAN  DEMOCRACY 


(i) 
Inborn 
differences 
in  gifts,  and 


(2) 

the  main- 
tenance of 
acquired 
advantages. 


Importance 
of  inherit- 
ance. 


An  ex- 
ample: the 
money-mak- 
ing business 
man. 


equality  is  to  be  found  in  the  unequal  endowments  of  men;  its  per- 
petuation in  the  influence  of  the  inheritance  both  of  property  and 
opportunity,  and  also  in  the  continued  influence  of  native  ability 
transmitted  from  ancestor  to  descendant. 

No  doubt  at  the  outset  aU  differences  arose  from  the  inborn  superi- 
ority of  some  men  over  others.  The  savage  chief  excels  his  fellows 
in  strength  and  in  cunning.  Throughout  history  the  strong  and 
able  have  come  to  the  fore.  They  continue  to  do  so  in  the  peaceful 
rivalry  of  civiUzed  communities.  In  our  present  society,  the  differ- 
ences in  wages  —  that  is,  in  the  incomes  from  all  sorts  of  labor  —  are 
the  results,  in  large  degree  at  least,  of  differences  in  endowments.  .  .  . 

But  at  a  very  early  stage  in  the  development  of  society,  this  original 
cause  of  difference  is  modified,  often  thrust  aside,  by  the  perpetuation 
of  established  advantages.  ...  In  the  supposedly  free  and  com- 
petitive society  of  modern  times,  advantage  still  tends  to  maintain 
itself.  It  does  so  in  two  ways,  —  through  the  influence  of  environ- 
ment and  opportunity,  and  through  the  inheritance  of  property. 
Environment  and  opportunity  have  already  been  considered.  .  .  . 

More  important,  however,  is  the  direct  inheritance  of  property. 
Its  influence  is  enormous.  Obviously,  this  alone  explains  the  per- 
petuation of  "funded"  incomes,  —  those  derived  from  capital,  land, 
income-yielding  property  of  all  sorts,  —  and  so  explains  the  great 
continuing  gulf  between  the  haves  and  the  have-nots.  It  serves  also 
to  strengthen  aU  the  lines  of  social  stratification,  and  to  reinforce 
the  influences  of  custom  and  habit.  Persons  who  inherit  property 
inherit  also  opportunity.  They  have  a  better  start,  a  more  stimu- 
lating environment,  a  higher  ambition.  They  are  likely  to  secure 
higher  incomes,  and  to  preserve  a  higher  standard  of  hving  by  late 
marriages  and  few  offspring.  .  .  . 

Nothing  illustrates  so  fuUy  the  combined  influence  of  inborn 
gifts,  of  property  inheritance,  of  perpetuated  environment,  as  the 
position  of  the  person  dominant  in  modern  society,  —  the  money- 
making  business  man.  In  the  first  stages  of  any  individual  business 
man's  career,  the  possession  of  means  counts  for  much.  After  the 
initial  stage,  native  ability  tells  more  and  more.  By  whatever  ways 
he  gets  his  start,  the  leader  of  industry  prospers  and  accumulates: 
and,  as  he  accumulates,  is  again  favored  more  and  more  by  large 


BASES  OF  THE  CAPITALISTIC   SYSTEM  145 

possessions.  When  he  dies,  he  leaves  a  trail  of  descendants,  who 
perhaps  inherit  abiUty  and  almost  certainly  inherit  property. 
With  property  they  inherit  a  new  environment  and  new  opportunities. 
It  may  indeed  happen  that  the  property  will  be  dissipated  through 
lack  of  thrift  or  judgment,  or  subdivided  among  heirs  into  minute 
portions.  But  neither  of  these  results  is  probable;  and  even  if  they 
occur,  the  descendants  have  ambitions  and  surroundings  very  differ- 
ent from  those  of  the  poorer  class  from  which  the  ancestor  may  have 
sprung.  In  every  way  inequaUties,  even  through  they  arise  at  the 
outset  without  favor,  tend  to  be  perpetuated  by  inheritance  and 
environment. 


Questions  on  the  foregoing  Readings 

1.  Why  is  capitalism  said  to  constitute  an  industrial  system? 

2.  What  were  probably  the  earliest  forms  of  private  property? 

3.  What   form   of   property   is   important   among   pastoral   peoples? 

Under  feudalism?     In  the  era  of  steam? 

4.  Trace  briefly  the  order  in  which   the  right  of  private  property 

probably  acquired  its  essential  attributes. 

5.  When  may  the  right  of  private  property  be  regarded  as  complete? 

6.  Why  are  contracts  necessary  in  modern  industry? 

7.  Name  two  forms  of  contracts. 

8.  What  are  the  six  essentials  of  a  contract? 

9.  Explain  how  a  contract  may  arise  by  word  of  mouth. 

10.  Explain  how  a  contract  may  arise  by  correspondence. 

11.  Why  do  men  compete  for  goods  and  services? 

12.  Under   what   general   heads   has   Professor    Carver   classified    the 

methods  of  struggling  for  existence? 

13.  What  can  be  said  as  to  the  universal  nature  of  competition? 

14.  Why  do  we  tend  to  take  economic  freedom  as  n  matter  of  course? 

15.  Outline  briefly  the  seven  kinds  of  economic  freedom  described  by 

Professor  Seligman. 

16.  Which  of  these  appears  to  you  to  be  the  most  important  from  the 

standpoint  of  national  prosperity?     Which  least  important? 

17.  What  is  the  aim  of  modern  governments,  with  respect  to  inter- 

fering with  competition? 

18.  Under  what  conditions  does  the  anticipation  of  wants  assume  its 

greatest  significance? 

19.  Why  is  an  individual  generally  able  to  go  into  a  shop  and  purchase 

a  shirt,  without  having  to  wait  for  that  shirt  to  be  made? 


146 


READINGS  IN  AMERICAN  DEMOCRACY 


20. 

21. 
22. 

23- 


24. 

25- 


What  class  assumes  the  chief  risk  in  estimating  the  future  demand 

for  goods? 
What  is  the  outstanding  merit  of  capitalism? 
What,    from  the  social    standpoint,    is   the  most  serious  evil  which 

has  accompanied  the  development  of  capitahsm? 
What  does  Professor  Taussig  mean  by  saying  that  the  distribution 

of  wealth  and  income  has  a  form  like  that  of  an  inverted  peg 

top? 
What  are  the  two  causes  of  the  inequality  of  wealth? 
Illustrate  the  influence  of  these  causes  with  respect  to  the  position 

of  the  "  money-making  business  man." 


b.  Programs  of  Industrial  Reform 

CHAPTER  XI 
SINGLE   TAX 

61.   The  persistence  of  poverty  in  modern  life  ^ 

By  single  tax  is  meant  a  policy  under  which  all  public  revenue  is   The  single 

to  be  raised  by  a  single  tax  on  land  value.     Land  value  is  defined     ^^    ^  ^^^ 

as  the  value  of  the  land  itself,  irrespective  of  all  improvements.    This 

means  that  land  value  includes  only  two  elements:   location  value 

and  fertility  value.    The  basic  idea  of  the  single  tax  is  an  old  one, 

but  the  modern  single  tax  movement  owes  its  origin  to  the  activities 

of  an  American  reformer,  Henry  George.    In  1879  George  pubhshed   Henry 

GcorEC 
a  remarkable  book,  Progress  and  Poverty,  in  which  he  expounded  his 

doctrine.    In  the  following  extract  from  Progress  and  Poverty,  George 

points  out  that  in  spite  of  the  progress  of  the  world,  poverty  persists: 

In  every  direction,  the  direct  tendency  of  advancing  civilization   The  pro- 

.  ductive 

is  to  increase  the  power  of  human  labor  to  satisfy  human  desires  —  to   power  of 

extirpate  poverty,  and  to  banish  want  and  the  fear  of  want.  .  .  .   labor  has 

The  growth  of  population,  the  increase  and  extension  of  exchanges,    increased, 

the  discoveries  of  science,  the  march  of  invention,  the  spread  of 

education,  the  improvement  of  government,  and  the  amelioration 

of  manners,  considered  as  material  forces,  have  all  a  direct  tendency 

to  increase  the  productive    power  of  labor  —  not  of  some  labor, 

but  of  all  labor;    not  in  some  departments  of  industry,  but  in  all 

departments.  .  .  . 

But  labor  cannot  reap  the  benefits  which  advancing  civilization   ''"*  wages 

'^  do  not 

thus  brings,  because  they  are  intercepted.     Land  being  necessary    increase 

to  labor,  and  being  reduced  to  private  ownership,  every  increase 

in  the  productive  power  of  labor  but  increases  rent  —  the  price  that 

labor  must  pay  for  the  opportunity  to  utilize  its  powers;   and  thus 

all  the  advantages  gained  by  the  march  of  progress  go  to  the  owners 

1  From  Henry  George,  Progress  and  Poverty.    Appleton  &  Co.,  New  York,  iSyg. 
Book  V,  Chapter  n. 

147 


148 


READINGS  IN  AMERICAN  DEMOCRACY 


because 

labor  is  de- 
prived of 
its  fruits. 


This  con- 
dition 
universal. 


of  land,  and  wages  do  not  increase.  Wages  cannot  increase;  for  the 
greater  the  earnings  of  labor  the  greater  the  price  that  labor  must 
pay  out  of  its  earnings  for  the  opportunity  to  make  any  earnings 
at  all.  .  .  . 

And  thus  robbed  of  all  the  benefits  of  the  increase  in  productive 
power,  labor  is  exposed  to  certain  effects  of  advancing  civilization, 
which,  without  the  advantages  that  naturally  accompany  them, 
are  positive  evils,  and  of  themselves  tend  to  reduce  the  free  laborer 
to  the  helpless  and  degraded  condition  of  the  slave.  .  .  . 

Look  over  the  world  to-day.  In  countries  the  most  widely  differing 
—  under  conditions  the  most  diverse  as  to  government,  as  to  indus- 
tries, as  to  tariffs,  as  to  currency  —  you  will  find  distress  among  the 
working  classes;  but  everywhere  that  you  thus  find  distress  and 
destitution  in  the  midst  of  wealth  you  will  find  that  the  land  is  monop- 
oHzed;  that  instead  of  being  treated  as  the  common  property  of  the 
whole  people,  it  is  treated  as  the  private  property  of  individuals; 
that,  for  its  use  by  labor,  large  revenues  are  extorted  from  the 
earnings  of  labor.  .  .  . 


George 
rejects  a 
number  of 
proposed 
remedies  for 
poverty, 
and  pro- 
poses the 
"true 
remedy," 


62.   The  remedy  proposed  by  Henry  George  ^ 

After  pointing  out  that  poverty  persists  despite  the  progress  of  the 
world,  George  discusses  six  of  the  remedies  for  poverty  which  were 
advocated  in  his  day.  These  are  (i)  greater  economy  in  govern- 
ment; (2)  the  education  of  the  working  classes  and  dissemination 
of  the  principles  of  thrift;  (3)  the  trade  union  movement ;  (4)  "the 
cooperation  of  labor  and  capital";  (5)  governmental  regulation 
of  industry;  and  (6)  a  more  general  distribution  of  land.  After 
a  short  discussion  of  these  so-called  remedies  for  poverty,  he  con- 
cludes that  all  of  them  are  either  "inefficacious  or  impracticable." 
He  then  announces  as  "the  true  remedy"  for  poverty  the  abolition 
of  private  property  in  land.  He  continues  the  discussion  in  the  follow- 
ing language: 

We  have  reached  this  conclusion  by  an  examination  in  which 
every  step  has  been  proved  and  secured.    In  the  chain  of  reasoning 


1  From   Henry    George,    Progress   and  Poverty. 
Chapter  11.    Book  vu.  Chapter  i. 


Appleton   &   Co.     Book  vi, 


SINGLE  TAX  149 

no  link  is  wanting  and  no  link  is  weak.     Deduction  and  induction   which  con- 
have  brought  us  to  the  same  truth  —  that  the  unequal  ownership   ?'*'■*, '"  J^'^^' 

.  ...  "''8  l^iid 

of  land  necessitates  the    unequal  distribution  of  wealth.     And  as   common 

in  the  nature  of  things  unequal  ownership  of  land  is  inseparable   Pi^opcrty. 

from  the  recognition  of  individual  property  in  land,  it  necessarily 

follows  that  the  only  remedy  for  the  unjust  distribution  of  wealth 

is  in  making  land  common  property.  .  .  . 

The   institution   of   private   property  ...  [in   land]   cannot    be   The  insti- 

defended  on  the  score  of  justice.    The  equal  right  of  all  men  to  the   ^ution  of 

private  prop 
use  of  land  is  as  clear  as  their  equal  right  to  breathe  the  air  —  it  is   erty  in 

a  right  proclaimed  by  the  fact  of  their  existence.     For  we  cannot       !^  ^^ 

unjust, 
suppose  that  some  men  have  a  right  to  be  in  this  world  and  others 

no  right. 

If  we  are  aU  here  by  the  equal  permission  of  the  Creator,  we  are  Arguments 
aU  here  with  an  equal  title  to  the  enjoyment  of  His  bounty  —  with  ^'^'^^nced 
an  equal  right  to  the  use  of  all  that  Nature  so  impartially  offers.  This 
is  a  right  which  is  natural  and  inalienable;  it  is  a  right  which  vests 
in  every  human  being  as  he  enters  the  world,  and  which  during 
his  continuance  in  the  world  can  be  limited  only  by  the  equal  rights 
of  others.  ... 

There  is  on  earth  no  power  which  can  rightfully  make  a  grant    in  support 

of  exclusive  ownership  in  land.     If  all  existing  men  were  to  unite     .  ^^"^ 

view. 

to  grant  away  their  equal  rights,  they  could  not  grant  away  the  right 

of  those  who  foUow  them.    For  what  are  we  but  tenants  for  a  day? 

Have  we  made  the  earth,  that  we  should  determine  the  rights  of 

those  who  after  us  shall  tenant  it  in  their  turn?     The  Almighty, 

who  created  the  earth  for  man  and  man  for  the  earth,  has  entailed  it 

upon  all  the  generations  of  the  children  of  men  by  a  decree  written 

upon  the  constitution  of  aU  things  —  a  decree  which  no  human  action 

can  bar  and  no  prescription  determine.     Let  the  parchments  be 

ever  so  many,  or  possession  ever  so  long,  natural  justice  can  recognize 

no  right  in  one  man  to  the  possession  and  enjoyment  of  land  that 

is  not  equally  the  right  of  all  his  fellows.  .  .  . 

The  recognition  of  individual  proprietorship  of  land  is  the  denial   Basic 

of  the  natural  rights  of  other  individuals  —  it  is  a  wrong  which  must   ^?^^^         , 
°  °  the  unequal 

show  itself  in  the  inequitable  division  of  wealth.    For  as  labor  cannot    distribution 
produce  without  the  use  of  land,  the  denial  of  the  equal  right  to  the  "^  wealth. 


150 


READINGS  IN  AMERICAN  DEMOCRACY 


use  of  land  is  necessarily  the  denial  of  the  right  of  labor  to  its  own 
produce.  ...  To  this  fundamental  wrong  we  have  traced  the  unjust 
distribution  of  wealth  which  is  separating  modern  society  into  the 
very  rich  and  the  very  poor.  .   .  . 


Nature  of 
the  single 
tax,  as 
proposed 
by  George. 


The  single 
tax  would 
encourage 
production, 


render 
possible  a 
more  equal 
distribution 
of  wealth, 


63.   Results  claimed  for  the  single  tax  ^ 

After  advancing  arguments  to  substantiate  his  claim  that  the 
private  ownership  of  land  is  unjust,  George  next  considers  the  best 
means  of  applying  his  "remedy."  His  proposal  is  to  aUow  individuals 
to  retain  possession  of  "their"  land,  but  to  confiscate  land  value  by 
taxation.  He  further  proposes  to  aboUsh  aU  other  taxes,  thus  making 
the  tax  on  land  value  a  single  tax.  This  single  tax  is  to  take  aU  land 
value  for  the  benefit  of  the  community,  and  is  to  be  the  source  of 
all  public  revenue.  George  advanced  the  following  claims  for  the 
single  tax: 

To  aboUsh  the  taxation  which,  acting  and  reacting,  now  hampers 
every  wheel  of  exchange  and  presses  upon  every  form  of  industry, 
would  be  like  removing  an  immense  weight  from  a  powerful  spring. 
Imbued  with  fresh  energy,  production  would  start  into  new  life,  and 
trade  would  receive  a  stimulus  which  would  be  felt  to  the  remotest 
arteries.  .  .  .  All  would  be  free  to  make  or  to  save,  to  buy  or  to  sell, 
unfined  by  taxes,  unannoyed  by  the  tax-gatherer.  Instead  of  say- 
ing to  the  producer,  as  it  does  now,  "The  more  you  add  to  the 
general  wealth  the  more  shaU  you  be  taxed!"  the  state  would  say 
to  the  producer,  "Be  as  industrious,  as  thrifty,  as  enterprising  as 
you  choose,  you  shall  have  your  full  reward!  You  shall  not  be  fined 
for  making  two  blades  of  grass  grow  where  one  grew  before;  you 
shall  not  be  taxed  for  adding  to  the  aggregate  wealth."  .  .  . 

[The  single  tax  would  also  have  a  desirable  effect  upon  the  distri- 
bution of  wealth.^  ...  If  it  went  so  far  as  to  take  in  taxation 
the  whole  of  rent,  the  cause  of  inequaUty  would  be  totally  destroyed. 
Rent,  instead  of  causing  inequality,  as  now,  would  then  promote 
equahty.  Labor  and  capital  would  then  receive  the  whole  prod- 
uce, minus  that  portion  taken  by  the  state  in  the  taxation  of  land 


'  From   Henry    George,    Progress   and  Poverty. 
Chapters  i,  n,  and  rv.    Book  vin,  Chapter  u. 


Appleton   &   Co.     Book  ix, 


SINGLE  TAX 


151 


values,  which,  being  applied  to  pubUc  purposes,  would  be  equally 
distributed  in  pubUc  benefits. 

That  is  to  say,  the  wealth  produced  in  every  community  would  be 
divided  in  wages  and  interest  between  individual  producers,  according 
to  the  part  each  had  taken  in  the  work  of  production;  the  other  part 
would  go  to  the  community  as  a  whole,  to  be  distributed  in  public 
benefits  to  all  its  members.  In  this  all  would  share  equally  —  the 
weak  with  the  strong,  young  children  and  decrepit  old  men,  the 
maimed,  the  halt,  and  the  bhnd,  as  well  as  the  vigorous.  ,  .  . 

[The  single  tax  would  work  great  improvements  in  social  organiza-  improve 
tion  and  social  Hfe.]  Noticeable  among  these  is  the  great  simpHcity  government, 
which  would  become  possible  in  government.  To  collect  taxes, 
to  prevent  and  punish  evasions,  to  check  and  counter-check  revenues 
drawn  from  so  many  distinct  sources,  now  make  up  probably 
three-fourths,  perhaps  seven-eighths  of  the  business  of  govern- 
ment, outside  of  the  preservation  of  order,  the  maintenance  of  the 
military  arm,  and  the  administration  of  justice.  An  immense  and 
compUcated  network  of  governmental  machinery  wovdd  thus  be  dis- 
pensed with. 

In  the  administration  of  justice  there  would  be  a  hke  saving  of   facilitate 

strain.    Much  of  the  civil  business  of  our  courts  arises  from  disputes   ^^^  adminis- 

as  to  ownership  of  land.     These  would  cease  when  the  state  was   civil  and 

virtually  acknowledged  as  the  sole  owner  of  land,  and  all  occupiers   criminal 

lu.w 
became   practically   rent-paying   tenants.  .  .  .  The   rise   of   wages, 

the  opening  of  opportunities  for  all  to  make  an  easy  and  comfortable 
living,  would  at  once  lessen  and  would  soon  eUminate  from  society 
the  thieves,  swindlers,  and  other  classes  of  criminals  who  spring  from 
the  unequal  distribution  of  wealth.  Thus  the  administration  of  the 
criminal  law,  with  aU  its  paraphemaUa  of  policemen,  detectives, 
prisons,  and  penitentiaries,  would,  Hke  the  administration  of  the 
civil  law,  cease  to  make  such  a  drain  upon  the  vital  force  and  atten- 
tion of  society.  We  should  get  rid,  not  only  of  many  judges,  baihfis, 
clerks  and  prison  keepers,  but  of  the  great  host  of  lawyers  who  are 
now  maintained  at  the  expense  of  producers;  and  talent  now  wasted 
in  legal  subtleties  would  be  turned  to  higher  pursuits.  .  .  . 

All  this  simpHfication  and  abrogation  of  the  present   functions  allow  an 
of  government  would  make  possible  the  assumption  of  certain  other  <=xtension  of 


152 


READINGS  IN  AMERICAN  DEMOCRACY 


numerous 

public 

services. 


and,  in 
summary, 
would 
carry  civili- 
zation to 
yet  nobler 
heights. 


functions  which  are  now  pressing  for  recognition.  Government 
could  take  upon  itself  the  transmission  of  messages  by  telegraph 
as  well  as  by  mail;  of  building  and  operating  railroads,  as  well  as 
of  opening  and  maintaining  common  roads.  .  ,  . 

There  would  be  a  great  and  increasing  surplus  revenue  from  the 
taxation  of  land  values,  for  material  progress,  which  would  go  on 
with  greatly  accelerated  rapidity.  .  .  .  This  revenue  arising  from 
the  common  property,  could  be  applied  to  the  common  bene- 
fit. ..  .  We  could  estabhsh  public  baths,  museums,  hbraries,  gardens, 
lecture  rooms,  music  and  dancing  halls,  theatres,  universities,  technical 
schools,  shooting  galleries,  play  grounds,  gymnasiums,  etc.  Heat, 
light,  and  motive  power,  as  well  as  water,  might  be  conducted  through 
our  streets  at  public  expense;  our  roads  be  Uned  with  fruit  trees; 
discoverers  and  inventors  rewarded,  scientific  investigations  sup- 
ported; and  in  a  thousand  ways  the  pubhc  revenues  made  to  poster 
efforts  for  the  pubhc  benefit.  .' .  . 

[In  summary  the  application  of  this  remedy  to  the  problem  of 
poverty  would]  raise  wages,  increase  the  earnings  of  capital,  extir- 
pate pauperism,  abolish  poverty,  give  remunerative  employment  to 
whoever  wishes  it,  afford  free  scope  to  human  powers,  lessen  crime, 
elevate  morals,  and  taste,  and  inteUigence,  purify  government  and 
carry  civilization  to  yet  nobler  heights."  .  .  . 


The  single 
tax  doctrine 
has  attracted 
world-wide 
attention. 


64.   The  case  for  the  single  tax  ^ 

The  doctrine  of  single  tax,  as  expounded  by  Henry  George,  has 
attracted  the  attention  of  social  reformers  the  world  over.  Thou- 
sands of  articles,  pamphlets  and  books  have  been  written  upon  the 
subject.  The  doctrine  has  been  lauded  by  a  small  group,  condemned 
outright  by  a  larger  group,  and  accepted  in  part  by  a  considerable 
number  of  thinking  people.  The  following  extract  from  the  De- 
baters' Handbook  Series  gives  in  compact  form  the  various  arguments 
which  have  been  advanced  in  favor  of  an  acceptance  of  the  doctrine 
of  single  tax: 


'  From  the  Debaters'  Handbook  Series,  Selected  Articles  on  Single  Tax.  Com- 
piled by  Edna  D.  Bullock.  The  H.  W.  Wilson  Co.,  White  Plains,  New  York,  igis', 
pp.  xiii-xvi. 


SINGLE  TAX 


153 


All  public  revenue  should  be  raised  by  a  single  tax  on  land  values,    Affirmative 
because  arguments: 

I.  The   present   national,   state,    and   local   taxes   are   fundamentally    Defects  of 

defective,  for  our  present 

A.  They  are  taxes  on  industry  and  improvements,  and  industry    ^'^^  system, 

and  improvements  should  not  be  taxed,  for 

1.  Taxes  falling  on  the  products  of  labor  discourage  their 

production. 

2.  Taxes    falling    on    improvements    lessen    the    amount    of 

improvements. 

B.  They  are  unjust  taxes,  for 

1.  They  can  be  easily  evaded. 

2.  They  can  to  a  considerable  extent  be  shifted. 

3.  They  bear  heavily  on  the  poor. 

4.  All  taxes  on  the  products  of  individual  labor  are  unjust 

when  society  has  a  fund  of  its  o»vn  from  which  to  draw 
its  revenues. 

C.  They  are  expensive,  complex,  and  cumbersome,  for 

I.  They  are  levied  on  a  great  variety  of  objects  and  require 
complicated  machinery,  and  duplication  of  machinery, 
for  their  assessment  and  collection. 

II.  The  single  tax  on  land  values  will  do  away  with  the  defects  of  the    The  single 

present  system,  for  tax  would 

A.   It  will  exempt  industry  and  improvements  from  taxation,  for    ^°  ^^^^ 

I.    Land  will  bear  the  entire  burden.  '  ^'l^  ^^^^^ 

„     T     •         -  r  defects. 

is.    It  IS  a  just  tax,  for 

1.  It  cannot  be  evaded,  for 

a.  Land  cannot  be  concealed  or  carried  off. 

b.  Land  values  can  be  easily  determined. 

2.  It  cannot  be  shifted,  for 

a.  It  will  be  paid  out  of  rent. 

b.  Landlords  cannot  pay  the  tax  from  an  increase  in 

rents,  for 
(i)  Rents  depend  on  supply  and  demand. 

c.  Economists  are  agreed  that  the  single  tax  cannot  be 

shifted. 

3.  It  is  a  burden  on  no  one,  for 

a.    The  fund  upon  which  it  draws  is  created  by  society,  for 
(i)  All  land  values  and  all  increase  in  land  values 
are  due  to  the  presence  of  society,  for 
(a)  If  society   were   not   there   the   land    would 

have  no  value. 
(6)   Individual   labor   or  improvements   do   not 
add  to  the  value  of  the  bare  land. 


154  READINGS  IN  AMERICAN  DEMOCRACY 

b.  It  merely  takes  from  the  landowner  the  unearned 
increment  of  land  due  to  presence  of  societ}', 
which  increment  is  a  social  and  not  an  individual 
product. 

C.  It  is  a  simple  tax,  for 

1.  There  is  one  object  of  taxation,  land  values. 

2.  Little  machinery  is  necessary  in  order  to  assess  and  collect 

a  tax  on  land  values  only. 

D.  It  is  an  adequate  tax,  for 

I.  It  has  a  large  fund  from  which  to  draw  revenue  in  the 
annual  rental  value  of  land  and  in  the  increase  in  value 
of  land  from  year  to  year. 

E.  It  is  an  elastic  tax,  for 

I.    The  amount  of  revenue  raised  by  the  tax  can  be  auto- 
matically raised  or  lowered  by  changing  the  rate,  for 
a.    The  fund  on  which  it  draws  is  much  larger  than  is 
necessary  for  all  governmental  expenditure. 
Social  bene-     m.    The  single  tax  on  land  values  will  bring  about  desirable  economic 

.     °    t  ^  and  social  readjustments  which  will  be  beneficial,  for 

single  tax,  .  . 

A.  The  condition  of  the  laboring  classes  will  be  improved,  for 

1.  Land  will  be  comparatively  easy  to  get,  for 

a.    Idle  land  will  be  forced  into  the  market  and  prices 
will  fall,  for 
(i)  It  will  be  taxed  at  its  full  value. 
(2)  Speculators  will  not  be  able  to  hold  it  out  of 
use  and  pay  taxes  on  it. 

2.  The  slum  problem  will  be  remedied,  for 

a.  Owners  of  cheap  tenements  will  have  to  build  better 

buildings  in  order  to  get  sufficient  income  to  pay 
the  taxes  on  the  land  value. 

b.  Vacant  land  will  be  available  at  cheap  prices. 

c.  The     exemption     of     improvements     will     stimulate 

building. 

3.  Wages  will  be  increased,  for 

c.    Employers   will   be   obliged   to   pay   workingmen   the 
equivalent  of  what  they  could  produce   on   the 
land,  for 
(i)  Land  will  be  available  to  anyone  who  will  put 
it  into  productive  use. 
b.   The  opening  up  of  the  vast  areas  now  held  out  of 
use  for  purposes  of  speculation  will  give  a  great 
amount  of  employment  to  labor. 

B.  The  farmer  will  be  benefited,  for 

I.   The  products  of  his  labor,  such  as  crops,  his  improve- 


SINGLE  TAX 


iSS 


IV. 


ments,  implements,   stocks,   etc.,   will  be   exempt   from 
taxation. 
2.   He  will  actually  pay  less  taxes  than  at  present,  for 

a.    The   vast   holdings   of   idle   land   in   both   cities   and 
rural  districts  will  bear  their  just  share  of  the  taxes. 
C.    All  forms  of  industry   will  be  stimulated  by  the   exemption 
of    labor,    capital    and    all    improvements    on    land,    from 
taxation  and  by  making  the  natural  resources  accessible 
to  all. 
The  single  tax  on  land  values  has  succeeded  where  it  has  been    The  single 
tried,  for  tax  has 

A.  It  has  greatly  benefited  Vancouver,  Victoria,  Edmonton  and    ^^^^^  j^ 

other  Canadian  municipalities.  has  been 

B.  It  has  worked  well  in  New  Zealand  and  Australia.  tried. 

C.  Taxes  with  some  single  tax  features  are  being  used  success- 

fully by  England,  Germany,  and  other  European  countries. 


65.   The  case  against  the  single  tax^ 

In  opposition  to  the   above   claims,    numerous   arguments   have   Negative 
been  advanced  against  the  single  tax.    These  negative  arguments  arguments: 
have  been  summarized  as  follows: 

Public  revenues  should  not  be  raised  by  a  single  tax  on  land  values, 
because 
I.   The  present  system  of  taxation  is  not  inherently  defective,  for        The  present 

A.  On  the  whole,  it  is  in  harmony  with  the  great  principle  of    fax  system 

taxation    that    each    individual    should    contribute    to    the    .  ,  , 

support  of  the  government  in  proportion  to  his  ability  to    defective, 
pay,  for 

1.  Property  taxes  form  the  basis  of  our  system  of  taxation. 

2.  Property  is  one  of  the  best  evidences  of  ability  to  pay. 

B.  It  is  a  diversified  system,  and  diversification  in  a  taxing  sys- 

tem is  desirable,  for 

1.  If  any  injustice  results  from  one  tax,  it  is  apt  to  be  equalized 

or  mitigated  by  the  other  taxes. 

2.  A  diversified  system  is  a  more  certain  source  of  revenue, 

for 

a.    If  one  source  fails,  others  can  be  drawn  upon. 

3.  It  affords  greater  elasticity. 

•  From  the  Debaters'  Handbook  Series,  Selected  Articles  on  Single  Tax.  Com- 
piled by  Edna  D.  Bullock.  The  H.  W.  Wilson  Co.,  White  Plains,  New  York,  1915; 
pp.  x\-i-xix. 


156 


READINGS  IN  AMERICAN  DEMOCRACY 


and  its 
specific  de- 
fects can  be 
remedied 
without 
overthrow- 
ing the 
entire 
system. 


Defects  of 
the  single 
tax  as  a 
system  of 
taxation: 

injustice, 


4.  It    requires    some    contribution    from    practically    every 

citizen. 

5.  It  permits  the  application  of  taxes  for  social  or  political 

purposes. 
C.    The  specific  defects  in  the  present  system  can  be  remedied  by 
specific  reforms  without  overthrowing  the  entire   system, 
for 

1.  The  greatest  evil  of  the  present  system  of  state  and  local 

taxation  —  evasion  —  can  be  done  away  with  by  the 
classification  of  property  for  purposes  of  taxation  and 
by  the  taxation  of  different  classes  at  different  rates,  for 

a.  If  a  low  rate  is  placed  on  intangible  and  other  personal 

property,  the  tax  will  not  be  evaded. 

b.  The    classified    property    tax    has    practically    done 

away    with    evasion   in    the    states    where    it   has 
been  adopted. 

2.  Injustices  in  the  present  system  can  be  remedied  by  the 

extension  of  progressive  inheritance  taxes  in  the  states 
and  the  adoption  of  a  progressive  income  tax  by  the 
federal  government. 

3.  The   separation   of   state   and  local   taxation    will   secure 

greater  simplicity  and  effectiveness  in  the  taxing  system. 

II.    Viewed  solely  as  a  system  of  taxation,  the  single  tax  on  land  values 
is  defective,  for 
A.   It  is  unjust,  for 

1.  It  fails  to  conform  to  the  canon  of  taxation  that  all  should 

pay  taxes  in  proportion  to  their  ability  to  pay,  for 

a.  It  taxes  individuals  only  in  proportion  to  the  value 

of  the  land  which  they  own. 

b.  It  taxes  the  poor  men's  land  and  exempts  the  rich 

men's  personal  property,   mansions,   skyscrapers, 
and  factories. 

c.  It  takes  no  consideration  of  income,  productiveness 

of  property,  or  any  of  the  evidences  of  ability  to 
pay. 

d.  It  exempts  nearly  all  monopolies  and  trusts. 

2.  It  discriminates  against  a  certain  class  in  society  —  the 

farmers,  for 

a.   It  compels  them  to  bear  an  undue  share  of  the  burdens 
of  taxation. 

3.  It  discriminates  against  one  of  the  elements  of  production, 

for 

a.   Labor  and  capital  should  also  bear  some  of  the  burden 
of  taxation,  for  ; 


SINGLE  TAX 


157 


(i)  There  are  socially  created  values  in  labor  and 
capital  as  well  as  in  land,  for 
(o)  The  products  of  labor  owe  their  value  to 

the  presence  of  society. 
(6)  The  factory  and  store  would  be  worthless 
if  society  did  not  offer  a  market  for  their 
products. 

(c)  The  business  man's  profits  and  the  income 

of    the    professional    man    are    socially 
created  values. 

(d)  Houses  and   all   other   improvements  have 

the  same  kind  of  socially  created  value 
as  has  land. 
4.    It  is  unjust  to  take  the  increment  of  land  in  taxes  and  not 
reimburse  the  landowner  when  there  is  a  decrement  in 
the  value  of  his  land. 
B.    It  is  difficult  of  assessment,  for 

I.   It  is  often  impossible  to  determine  land  values  exclusive 
of  improvements,  for 

o.    The  value  of  irrigated,   cultivated  or  fertilized  land 
cannot    be    correctly    estimated    apart    from    the 
improvements. 
C    It  is  inelastic,  for 

1.  It  cannot  be  increased,  for 

a.   The  purpose  of  the  single  tax  is  to  take  all  of  the 
rent  of  land. 

2.  The  selling  value  and  rental  value  of  land  ffuctuate  and 

will  cause  fluctuations  in  the  amounts  raised  by  the  tax. 

D.  It  is  inadequate,  for 

I.    In  many  poor  communities  the  rent  of  land  is  insufficient 
to  meet  the  expenses  of  government. 

E.  It  will  lead  to  extravagance,  for 

1.  In  many  communities  there  are  enormous  land  values  and 

large  funds  will  pour  into  the  public  treasury. 

2.  The  interest  of  citizens  in  having  government  economically 

administered  will  be  lessened,  for 
a.    A  majority  will  pay  no  taxes. 

F.  Its  adoption  will  necessitate  the  abolition  of  revenue  taxes, 

such  as  the  taxes  on  opium,  liquors,  tobacco,  adulterated 
foods,  etc.,  and  of  protective  taxes,  such  as  the  tariff. 

m.    As  a  scheme  for  social  and  economic  reform,  the  single  tax  on 
land  values  is  undesirable,  for 
A.   It  will  result  in  the  confiscation  of  private  property  in  land, 
for 


diflSculty  of 
assessment, 


and  inelas- 
ticity. 


It  is 
inadequate, 

will  lead  to 
extrava- 
gance. 


and  will 
necessitate 
the  aboli- 
tion of  reve- 
nue taxes. 


158 


READINGS  IN  AMERICAN  DEMOCR.\CY 


Defects  of 
the  single 
tax  as  a 
scheme  of 
social  and 
economic 
reform. 


I.  The  appropriation  by  society  of  the  rent  and  increase 
in  value  of  land  will  abolish  the  selling  value  of  land 
and  constitute  the  state  the  universal  landlord. 

B.  Confiscation  of  private  property  in  land  is  not  desirable,  for 

1.  By   a   process   of   evolution   society   has   evolved   from   a 

state   of   common   or   community   ownership   of  land   to 
a  state  of  private  o^vnership  of  land. 

2.  Private  ownership  of  land  is  the  basis  of  our  civilization. 

C.  It  will  result  in  discouraging  the  policy  of  conservation,  for 

1.  A  premium  will  be  placed  on  exploiting  natural  resources. 

2.  Timber  lands  especially  will  suffer,  for 

a.    The  timber  will  have  to  be  cut  to  pay  the  taxes,  for 
(i)  The  land  yields  no  income  until  the  timber  is 
cut. 


The  single 
tax  agita- 
tion has 
rendered 
many 
valuable 
services: 

it  has  aided 
in  the  re- 
form of  our 
taxation 
system; 


it  has 
directed 
attention  to 
the  social 
effects  of 
taxation; 


66.    Services  rendered  by  the  single  tax  agitation  ^ 

The  majority  of  economists  are  agreed  that  the  single  tax,  as 
advocated  by  Henry  George,  is  too  radical  and  drastic  a  reform  ever 
to  find  wide  acceptance  among  the  American  people.  Nevertheless, 
the  single  tax  agitation  has  performed  a  number  of  valuable  services, 
as  Dr.  Young  points  out  in  the  following  selection: 

Single  taxers  have  found  a  ready  object  of  criticism  in  existing 
tax  methods,  and  they  have  not  come  short  of  their  opportunity  to 
point  out  faults.  In  this  they  have  performed  a  most  valuable  public 
service.  They  have  occupied  a  prominent  place  in  the  ranks  of  tax 
reformers.  So  far  as  destructive  criticism  goes  they  have  frequently 
been  in  close  agreement  with  those  having  other  tax  ideals.  They 
have  persistently  laid  bare  the  theoretical  and  administrative  de- 
fects of  the  general  property  tax;  they  have  shown  the  injustice 
of  poll  taxes;  they  have  set  forth  the  burdensomeness  of  federal 
indirect  taxation;  they  have  labored  assiduously  to  relax  the  rigid 
tax  clauses  of  state  constitutions;  and  they  have  worked  ardently 
for  the  juster  and  more  efficient  administration  of  taxes.  .  .  . 

Finally,  single  taxers  have  directed  attention  to  the  social  effects 
of  taxation.  The  principle  of  using  the  taxing  power  as  a  means 
of  social  reform  has  unquestionably  gained  a  wider  acceptance  as 
the  result  of  the  single  tax  agitation.  .  .  . 

1  From  Arthur  Nichols  Young,  The  Single  Tax  Movement  in  the  United  States. 
Princeton  University  Press,  Princeton,  1916;  pp.  313,  315,  319. 


SINGLE  T.\X  159 

Another  most  important  way  in  which  the  single  tax  movement   it  has  aided 
has  exerted  influence  has  been  in  directing  attention  to  the  vital  ^^j^^jo^' 
importance  of  the  conservation  of  natural  resources.  .  .  .  [Single   conserve 
taxers]  have  actively  opposed  the  efforts  which  from  time  to  time  have  ^^^^f^^^ 
been  made  to  induce  Congress  to  grant  away  the  remainder  of  the 
nation's  natural  resources  to  those  who  covet  them  without  requir- 
ing a  due  return.  .  .  . 

Finally,  the  American  single  tax  movement  has  been  a  powerful   and  it  has 
force   insistently    directing    attention    to    the    vexed    problem    of   ^1^^^^^^^^^ 
poverty.  ...  Through  the  propaganda  of  Henry  George  and  his  to  the 
followers  hundreds  of  thousands  have  been  led  to  consider  how  the   p^^^j^^  ° 
condition  of  mankind  may  be  ameliorated.     Never  before  has  the 
pressing  importance  of  social  reform  been  felt  as  in  the  last  genera- 
tion.   The  most  vital  message  of  Henry  George's  life  and  work  was 
the  urgency  of  social  reform.    Whatever  the  fate  of  the  remedy  for 
which  he  so  earnestly  contended,  one  thing  is  sure.    Henry  George 
made  it  plain  that  no  true  civihzation  can  avoid  the  duty  of  finding 
a  means  to  "extirpate  poverty"  and  "to  Hghten  the  burdens  of  those 
compelled  to  toil." 


Questions  on  the  foregoing  Readings 

1.  Define  single  tax. 

2.  Just  what  is  meant  by  land  value? 

3.  What  is  the  importance  of  Henry  George  in  the  single  tax  agitation? 

4.  What  did  George  point  out  with  regard  to  the  persistence  of  poverty 

in  modern  life? 

5.  What,  according  to  George,  is  the  reason  for  this  persistence? 

6.  What  were  the  six  remedies  for  poverty  which  George  examined 

and  rejected  as  inadequate? 

7.  What  remedy  did  George  propose  for  the  eradication  of  poverty? 

8.  What  arguments  did  he  advance  to  prove  that  the  private  owner- 

ship of  land  is  unjust? 

9.  Outline  briefly  the  results  which  George  claimed  would  follow  from 

an  application  of  his  "  remedy." 

10.  Outline  the  case  in  favor  of  the  single  tax. 

11.  What  are  the  chief  arguments  against  the  single  tax? 

12.  What,   according    to    Dr.  Young,  has   been   the    service   rendered 

by  the  single   taxers   with  regard   to  taxation  reform   in  this 
country? 


l6o  READINGS  IN  AMERICAN  DEMOCRACY 

13.  What  service  has  the  single  tax  agitation  rendered  with  regard 

to  the  social  effects  of  taxation? 

14.  What  has  been  the  service  of  the  single  taxers  with  reference  to 

the  conservation  of  natural  resources? 

15.  Explain  how  the  single   tax  agitation  has  performed  a  valuable 

service  by  directing  attention  to  the  problem  of  poverty. 


CHAPTER  XII 


PROFIT   SHARING   AND    COOPERATION 


67.  Profit  sharing  establishments  in  the  United  States  ^ 

Profit  sharing  is  a  device  which  aims  to  bind  together  the  employer 
and  employees  in  a  given  business.  Profit  sharing  seeks  to  achieve 
this  aim  by  distributing  among  the  workmen,  in  addition  to  their 
regular  wages,  a  share  of  those  profits  which  would  ordinarily  go  en- 
tirely to  the  employer.  In  1916  the  United  States  Department  of 
Labor  undertook  a  comprehensive  survey  of  profit  sharing  in  this 
country.  In  that  year  sixty  estabhshments  had  profit-sharing  systems, 
more  than  two-thirds  of  which  had  been  in  operation  less  than  ten 
years.  Of  these  sixty  profit  sharing  estabhshments,  thirty-three  were 
manufacturing  concerns.  The  following  is  the  complete  hst  of  profit 
sharing  estabhshments  in  the  United  States  in  1916,  as  compiled  by 
the  Department  of  Labor: 

Establishments  with  Profit-sharing  Plans  in  Operation  in  1916 


Name  of  Firm 


km.  Light  &  Traction  Co. .  . . 
Am.  Manufacturing  Concern . 

Baker  Manufacturing  Co 

Ballard  &  Ballard  Co... 

Ballinger  &  Perrot 

Bartley,  R.  A 

Benoit  System 

Blood,  J.  B..  Co 

Boston  Consolidated  Gas  Co. 

Bourne  Mills 

Burritt,  A.  W 


City  and  State 


New  York,  N.  Y.. 
Falconer,  N.  Y.. . 

Evansville,  Wis. . . 

Louisville,  Ky..  . . 

Philadelphia,  Pa.. 

Toledo,  Ohio 

Bangor,  Me 

Lynn,  Mass 

Boston,  Mass. .  .  . 
Fall  River,  Mass., 
Bridgeport,  Conn. 


Industry  or  Business 


Public  utility 

Manufacturing  wood  nov- 
elties, toys,  desks. 

Manufacturing    windmills 
and  gasoline  engines. 

Manufacturing   —    Flour 
milling. 

Architects  and  contractors. 

Mercantile 

....do 

....do 

Public  utility 

Manufacturing  cotton  cloth 

Manufacturing  —  Lumber 
mill. 


Year 
plan 
was 
estab- 
lished 


1899 
191S 

1899 

1886 

191 1 
1904 
1914 
1909 
1906 
1889 
1900 


In  1916  an 
investigation 
by  the  U.S. 
Department 
of  Labor 
revealed 


sixty  profit 
sharing  es- 
tablishments 
in  the 
United 
States. 


*  From  the  United  States  Department  of  Labor,  Bureau  of  Labor  Statistics, 
Profit  Sharing  in  the  United  States.    Washington,  1917;  p.  10. 

161 


l62 


READINGS  IN  AMERICAN  DEMOCRACY 


Name  of  Firm 


Cabot,  Samuel 

Carolina  Savings  Bank 

Chatfield  Milling  &  Grain  Co. 


Cleveland  Twist  &  Drill  Co. 

Davis,  W.  B 

Eastman  Kodak  Co 


Edison  Electric  Illuminating  Co. 

EUiman,  D.  L.,  &  Co 

Empire  Trust  Co 

Farr  Alpaca  Co 

Garfield  Savings  Bank 

Graves,  H.  B.,  &  Co 

Guardian  Savings  &  Trust  Co... 
Harris  Trust  &  Savings  Bank.  . 

Hathaway,  C.  F.,  &  Sons 

Heebner  &  Sons 


Hollenberg  Music  Co 

Ivey,  J.  B.,  &  Co 

Krauter,  C.  H 

Kutztown  Foundry  &  Machine 
Co. 

Lever  Bros.  (Ltd.) 

Liberty  Trust  Co 

Maxwell,  A.  L.,  Co 

Milmore  Corporation,  The 

Miner-Hillard  Milling  Co 

Minneapolis  Bedding  Co 


Nelson,  N.  O.,  Mfg.  Co. 


New  Haven  Gas  Light  Co 

Newport  Daily  News 

Noyes,  Chas.  F.,  Co 

Parks,  G.  M.,  Co 

Patton  Paint  Co 

Peninsular  Paper  Co 

Plymouth  Cordage  Co 

Record  Auto  Supply  &  Service 
Co. 

Sears,  Roebuck  &  Co 

Simmons,  R.  F.,  Co 

Simplex  Wire  &  Cable  Co 


Spencer  Wire  Co 

Stambaugh-Thomson  Co. 

Stevens,  Samuel 

Stem,  Bernard  &  Son .  .  . 


Title  Guarantee  &  Trust  Co. 
Tyler,  W.  S.,  Co 


Underwood  Typewriter  Co.,  Inc. 
Union  Savings  Bank  &  Trust  Co. 
United  Electric  &  Water  Co. .  .  . 
Vitagraph-Lubin-Selig-Essanay 

Co.  (Inc.). 
Ward  Baking  Co 


City  and  State 


Boston,  Mass. .  .  . 
Charleston,  S.  C. 
Bay  City,  Mich.. 

Cleveland,  Ohio. 

....do  

Rochester,  N.  Y. 


Brooklyn,  N.Y.... 
New  York,  N.  v.. . 

do 

Holyoke,  Mass. .  .  . 
Cleveland,  Ohio.  .  . 
Rochester,  N.  Y. . . 
Cleveland,  Ohio.  .  . 

Chicago,  111 

Cambridge,  Mass. . 
Lansdale,  Pa 


Little  Rock,  Ark... 
Charlotte,  N.  C...  . 
Youngstown,  Ohio. 
Kutztown,  Pa 


Cambridge,  Mass. . . 

Boston,  Mass 

Lawrenceville,  111.  . 
South  Bend,  Ind. .  . 
Wilkes-Barre,  Pa... . 

Minneapolis,  Minn. 

St.  Louis,  Mo 

New  Haven,  Conn. 
Newport,  R.  I 

New  York,  N.  Y. 
Fitchburg,  Mass. .  . 
Milwaukee,  Wis. .  . 

Ypsilanti,  Mich 

Plymouth,  Mass..  . 
Washington,  D.  C. 

Chicago,  111 

Attleboro,  Mass. . 
Boston,  Mass...  . 


Worcester,  Mass. . . 
Youngstown  Ohio 
Columbus,  Ohio. .  . 
Milwaukee,  Wis. .  . 

New  York,  N.  Y. . 
Cleveland,  Ohio.  .  . 

New  York,  N.  Y. . 
Cincinnati,  Ohio..  . 

Hartford,  Conn 

New  York,  N.  Y. . 


Industry  or  Business 


Manufacturing  chemist.. .  . 

Banking 

Manufacturing     —     Flour 
millers,  grain  dealers,  etc. 

Manufacturing  drills,  etc... 

Mercantile 

Manufacturing  photo- 
graphic appliances  and 
supplies. 

Public  utility 

Real  estate  brokers 

Banking 

Manufacturing  cotton  cloth 

Banking 

Mercantile 

Banking 

do 


Wholesale  baking 

Manufacturing  agricultural 

machinery. 
Mercantile 

do 

do 


Manufacturing  —  Foundry 

and  machine  works. 
Manufacturing  —  Soap. . .  . 

Banking 

Mercantile 

Manufacturing  chemists. . . 
Manufacturing  —  Milling, 

flour,  meal,  grits,  etc. 
Manufacturing    beds    and 

bedding. 
Manufacturing     plumbers' 

and  steamfitters'  supplies. 

Public  utility 

NewspajDer  publishing 

Real  estate  brokers 

Contractors  and  builders.  . 

Manufacturing  paints 

Manufacturing  cover  papers 
Manufacturing  cordage.. .  . 
Mercantile 


.do. 


....do 

Manufacturing  jewelry .... 
Manufacturing  insulating 

wires  and  cables. 

Manufacturing  wire 

Mercantile 

do 

Manufacturing   —   Flour 

milling. 

Banking 

Manufacturing  mining 

screens. 
Manufacturing  typewriters 

Banking 

Public  utility 

Mercantile —  Distributors 

of  moving-picture  films. 
Bakers s 


PROFIT   SHARING  AND   COOPERATION  1 63 

68.   Examples  of  successful  profit  sharing  ^ 

In  a  number  of  cases  profit  sharing  has  worked  out  to  the  advan-  The  inves- 
tage  and  satisfaction  of  both  employer  and  employees.     This  has  been  *'^^ij°\°^ 
shown,  for  example,  by  the  investigations  of  the  National  Industrial   ing  by  the 
Conference  Board.    The  Board  tested    the  practicabihty  of  profit   jj^j^strial 
sharing  in  the  United  States  by  sending  out  inquiries  to  industrial   Conference 
establishments  which  at  one  time  or  another  had  used  this  method  of      °^^  ' 
remuneration.     The  following  extract  from  the  1920  report  of  the 
Board  contains  some  of  the  favorable  replies  to  these  inquiries: 

A  company  manufacturing  plumbing  goods,  whose  plan  has  had   Benefits: 
a  long  period  of  trial,  stated:   "In  general,  we  feel  that  a  system  of 
profit  sharing  is  an  amehorating  influence,  but  that  it  is  not  a  cure-aU." 

The  Miner-Hillard  Milhng  Company,  grain  millers,  Wilkes-Barre,   Increased 
Pa.,  whose  plan  was  adopted  in  1906,  reported:   "It  has  paid  us  well,    °^.^  ^^ _ 
because  our  relations  with  our  men  have  made  our  work  Ughter  and   tion. 
a  pleasure  in  many  cases  where  it  would  otherwise  have  been  a 
burden.     It  has  always  attracted  to  us  the  best  quahty  of  men." 

A  chemical  manufacturing  company,  whose  plan  was  adopted 
in  1888,  wrote:  "We  feel  that  the  effect  upon  our  operatives  has 
been  good." 

A  fuel  company  of  Massachusetts  which  adopted  profit  sharing  Reduction 
in  1 91 8  gave  an  account  of  the  operation  of  the  plan  in  a  coke  plant.  ^^.^q^Jj. 
It  wrote  that  the  plan  had  a  tendency  to  reduce  labor  turnover; 
to  make  employees  more  economical  with  materials,  and  to  bring 
about  "contentment  and  cooperation  of  workers."  It  said  further: 
"After  once  receiving  a  share  of  profits  the  employees  are  anxious  to 
hold  their  jobs  so  as  to  receive  all  subsequent  profits." 

A  shoe  manufacturing  company,  whose  plan  was  adopted  in  191 7> 
wrote:  "The  effect  of  the  plan  has  been  to  reduce  labor  turnover, 
also  labor  disturbances.  We  feel  that  it  has  added  to  the  cooperation 
of  our  workers,  and  this  w'ould  of  necessity  improve  the  quahty  of 
the  work." 

The  Cleveland  Twist  Drill  Company,  whose  plan  was  adopted 

in  1 91 5,  stated:    "We  do  not  know  of  any  direct  benefit  from  the 

*  From  the  National  Industrial  Conference  Board,  Research  Report  No.  29, 
Practical  Experience  with  Profit  Sharing  in  Industrial  Establishments.  Boston, 
1920;  pp.  11-19. 


1 64 


READINGS  IN  AMERICAN  DEMOCRACY 


Increased 
eflSciency. 


Avoidance 
of  labor 
disturb- 
ances. 


Promotion 
of  thrift. 


profit-sharing  plan  in  economy  in  the  use  of  material,  although  there 
may  be  an  indirect  benefit." 

The  Brooklyn  Edison  Company,  Brooklyn,  N.Y.,  wrote:  "Profit 
sharing  has  led  to  increased  efiiciency  and  regard  for  company 
property." 

Only  a  few  estabHshments  reported  as  to  the  effect  of  profit-sharing 
plans  on  the  quahty  and  quantity  of  work  turned  out.  ...  A  textile 
establishment  .  ,  .  said  regarding  the  quality  of  product:  "This 
has  undoubtedly  been  improved  through  the  increased  cooperation 
of  employees  and  between  heads  of  departments." 

Another  estabUshment  reported:  "We  have  several  instances 
where  a  press  gang  would  work  extra  each  day  in  order  that  they 
might  increase  their  annual  share  of  the  profits  as  well  as  add  to  their 
daily  earnings." 

The  R.  F.  Simmons  Company,  of  Attleboro,  Mass.,  jewelry  manu- 
facturers, which  adopted  profit  sharing  in  1902  with  a  view  to  pro- 
moting cordial  relations  with  their  workers,  wrote:  "While  our 
plan  ...  is  not  a  panacea  for  all  industrial  ills,  yet  we  have  felt 
that  our  policy  in  this  respect  has  been  a  material  factor  in  securing 
loyal  and  interested  cooperation  in  the  production  of  Simmons 
Chains.  Furthermore,  this  loyalty  was  put  to  a  severe  test  in  August, 
191 8,  when  a  general  strike  (the  first  of  its  kind  in  this  city)  occurred 
in  the  jewelry  business  here,  and  only  one  man  and  three  women  out 
of  200  employees  responded  to  the  strike  call  .  .  .  despite  the  fact 
that  by  far  the  majority  of  the  jewelry  employees  of  the  city  went 
on  strike,  and  in  the  face  of  vigorous  and  persistent  picketing  of 
our  plant." 

The  Brooklyn  Edison  Company  wrote:  "We  feel  that  our  plan 
is  unique  and  very  satisfactory  to  the  employees  and  to  the  company. 
It  has  tended  to  lengthen  the  term  of  service  of  the  employees; 
induced  many  to  become  owners  of  stock  in  the  company,  and  makes 
for  general  loyalty  and  efficiency.  On  the  other  hand,  it  has  led 
many  employees  to  estabhsh  systematic  habits  of  thrift.  .  .  ." 

An  establishment  which  distributes  profits  in  the  form  of  shares 
of  stock,  wrote:  "Only  in  a  few  cases  of  necessity  have  the  employees 
sold  their  shares  or  even  their  balances,  which  goes  to  show  that  the 
employees  are  anxious  to  save."  .  .  . 


PROFIT  SHARING  AND   COOPERATION  1 65 

69.   Examples  of  unsuccessful  profit  sharing  ^ 

Although  profit  sharing  has  proved  more  or  less  successful  in  a   In  a  num- 
nnmber  of  cases,  in  other  instances  it  has  been  abandoned  as  an     ^'"  °  ^^^^ 
unworkable  scheme.     In   the  following  extract  Dr.   Paul   Monroe   ing  has 
presents  a  number  of  cases  in  which  industrial  establishments  in    /'^^I'^^' 
the  United  States  have  abandoned  profit  sharing:  cause  of 

Keene  Brothers,  of  Lynn,  Mass.,  manufacturers  of  shoes,  adopted   its  failure 
a  plan  of  profit  sharing  in  1885,  but  did  not  make  pubhc  any  details.    ^°^^^      ^^^' 
One  or  two  divisions  [of  profits]  were  made;    but  the  personnel  of   troubles, 
the  firm  was  changed  and  the  plan  was  abandoned.     It  had  not 
prevented  labor  disturbances  during  the  years  that  dividends  were  paid. 

The  New  England  Granite  Works,  of  Westerly,  R.  I.,  adopted  an 
elaborate  plan  of  profit  sharing  in  1886,  chiefly  as  a  protection  against 
labor  difficulties.  Lack  of  good  faith  was  charged  by  both  sides; 
no  bonus  was  ever  paid. 

Welshans  and  McEwans,  plumbers,  of  Omaha,  Neb.,  divided 
all  net  profits  for  1886,  after  reserving  interest  on  capital,  pro  rata 
between  capital  and  wages.  For  the  first  year  the  bonus  amounted 
to  an  extra  month's  pay  on  eight  months'  work.  The  following  year 
the  men  went  out  on  a  general  strike,  and  the  plan  was  abandoned. 

The  Hoffman  and  Billings  Company,  of  Milwaukee,  Wis.,  manu-   because  of 

facturers  of  plumbers'  goods,  divided  net  profits  equally  between   ^^^  resent- 
^  o  ;  r-  ^  •.        .>  ment  of  the 

capital  and  labor,  each  laborer  participating  in  proportion  to  wages   employees 

earned  for  the  years  1886-1890.     "This  plan  worked  w-ell  for  several   ^'^^^  '^^"^ 

were  no 

years  when  there  were  profits  to  divide,  but  when  we  happened  to   profits  to 

have  a  poor  year,  and  losses  instead  of  gains  at  the  end  of  the  year,   d'^ide, 

we  met  sour  faces  all  around  among  our  men,  and  concluded  that 

it  was  too  much  of  a  'jug-handle  affair'   to  be  continued,  so  we 

dropped  it.  .  .  ." 

The  Springfield  Foundry  Company,  of  Springfield,  Mass.,  began   because  of 

to  divide  profits  in  1887,  and  discontinued  the  plan  after  three  years'   ''•*  failure 
^  '  ^  to  mcrease 

trial.    The  bonus  amounted  to  2  or  3  per  cent  on  wages.    The  firm   production 

says,  "In  our  business,  it  was  an  injury  rather  than  a  benefit  to  us.    ^"V'  secure 

We  coidd  not  see  any  perceptible  increase  in  the  production  of  our   benefits, 

'  From  Paul  Monroe,  "Profit  Sharing  in  the  United  States."  The  American 
Journal  oj  Sociology,  Vol.  i,  No.  6.    May,  1896;    pp.  700-701,  705-707!  1°9- 


i66 


READINGS  IN  AMERICAN  DEMOCRACY 


because 
of  trade 
union 
opposition, 


or  because 
of  the  fail- 
ure of  profit 
sharing 
to  render 
the  employ- 
ees more 
careful  and 
helpful. 


Summary. 


men,  nor  interest  in  the  care  of  their  tools  or  material.  On  the  con- 
trary, our  employees  began  to  think  that  they  were  the  proper  parties 
to  fix  wages,  and  the  prices  at  which  we  should  sell  the  products. 
The  employees  were  also  careful  to  take  advantage  of  their  member- 
ship in  the  labor  unions  to  enforce  their  demands.  Since  we  have 
abandoned  the  system  of  profit  sharing,  these  troubles  do  not  exist." 

The  St.  Louis  (Mo.)  Shovel  Company  divided  profits  from  1887 
to  1894.  .  .  .  Their  opinion  is  that  the  plan  decreases  the  profits 
of  the  firm,  and  "so  long  as  labor  unions  dominate  labor,  profit 
sharing  cannot  be  a  success  nor  prevent  labor  troubles,  even  though 
employers  conscientiously  and  liberally  endeavor  to  work  under  the 
system.  ..." 

The  Watertown  (N.  Y.)  Steam  Engine  Company  divided  profits 
for  the  year  1891.  Their  experience  was  "that  in  the  case  of  a  fair 
proportion  of  our  men  we  secured  better  service,  better  regard  for 
the  interests  of  the  business,  but  that  a  still  larger  number  of  the 
men  regarded  their  dividends  as  simply  so  much  extra  pay  and  were 
no  more  careful  than  before.  We  are  quite  willing  to  beUeve  that 
if  the  experiment  had  been  continued  for  a  number  of  years  we  should 
have  developed  among  the  men  a  sentiment  which  wovild  have  com- 
pelled the  indolent  and  indifferent  ones  to  give  us  better  service 
or  incur  the  disapproval  and  ostracism  of  their  fellow  workmen. 
The  result  for  the  first  year,  however,  was  so  far  from  showing  any 
very  favorable  improvement  that  we  discontinued  it." 

A  brief  summary  must  here  sufiice.  ...  In  comparison  with 
European  experience,  one  is  struck  with  the  brevity  of  the  trial 
[of  profit  sharing  in  the  United  States].  As  to  a  fundamental  prin- 
ciple, the  large  majority  [of  firms]  are  of  the  opinion  that  such  a 
plan  results  in  a  financial  loss  to  the  employer,  he  being  recouped 
if  at  all  in  non-computable  ways.  Those  which  continue  the  plan 
do  so,  not  as  a  matter  of  philanthropy,  but  as  a  matter  of  justice  if 
not  of  business.  These  are  about  equally  divided  in  their  opinion  as 
to  the  direct  financial  benefit  of  the  plan  to  the  firm.  While  it  is 
true  .  .  .  that  one  success  wiU  prove  that  it  can  be  done  with  profit 
and  any  number  of  failures  not  prove  the  contrary,  yet  it  is  as  a  gen- 
eral type,  not  an  individual  variation,  that  such  a  system  has  social 
significance.  .  .  . 


PROFIT  SHARING  AND   COOPERATION  167 

70.   Examples  of  successful  cooperation  ^ 

Often  discussed  in  connection  with  profit  sharing,  but  of  greater   Status  of 

social    significance,    is    cooperation.      In    general,    cooperation    has   cooperation 

in  the 
developed  more  slowly  in  the  United  States  than  in  Great  Britain   United 

and  on  the  continent  of  Europe.    Nevertheless,  some  types  of  cooper-   ^t^t^^- 
ation  have  attained  considerable  success  in  this  country,  particularly, 
perhaps,  consumers'  cooperation.     In  the  following  passage,  James 
Peter  Warbasse  gives  some  examples  of  successful  consumers'  coop- 
eration in  the  United  States: 
All  over  the  country  the  movement  has  developed.    It  has  been  Over 


2000 


sporadic.    No  center  can  be  designated  as  the  seat  of  the  renaissance   consumers' 

.  cooperative 

of  cooperation.     The  agricultural  people  of  the  northern  states  have   societies  in 

been  among  the  first  in  this  new  era.     The  Cooperative  League  of   ^^^  United 
A         •        1         ,  I    1  r  States. 

America  has  knowledge  of  over  2,000  true  consumers'  cooperative 

societies  conducting  stores.  .  .  . 

The  Tri-state  Cooperative  Society  is  a  federation  of  about  seventy   The  Tri- 

societies,  mostly  in  western  Pennsylvania.    These  societies  are  con-   ^*^^^  9^' 

operative 
stituted  of  many  nationahties;   Poles,  Slovaks,  Lithuanians,  Ukrani-   Society. 

ans,  Italians  and  Bohemians.  One  of  the  typical  successful  organiza- 
tions is  that  of  BentleyviUe,  Penn.  Here,  in  a  Httle  mining  town, 
it  has  crowded  out  private  business,  and  handles  groceries,  meats, 
dry  goods,  shoes,  feed,  and  automobile  suppKes  to  the  amount  of 
$200,000  a  year.  .  .  . 
The  Central  States  Cooperative  Society  is  a  federation  of  about    The  Central 

sixty-five  distributive  societies.     Its  headquarters  are   Springfield,    States  Co- 

^  r-       o         7    operative 

111.     It  maintains  a  wholesale  with  a  warehouse  at  East  St.  Louis.    Society. 

These  societies  are  largely  built    up  among  the  tmion  locals  of  the 

United  Mine  Workers  in  Illinois.     This  Is  a  group  of  about  eighty 

of  these  societies.    Their  financial  success  enables  many  of  them  to 

return  to  their  members  a  savings-return  of  from  6  to  12  per  cent 

quarterly  on  the  cost  of  their  purchases.  .  .  . 

Illinois  is  but  an  index  of  what  is  going  on  in  the  neighboring   The  Pala- 

states.    Strong  groups  of  societies  exist  in  Indiana,  Ohio  and  Iowa.    '^'"'^  9°' 
.  operative 

The  Palatme  Cooperative  Society  of    Chicago  with   1200  members   Society. 

*  From  James  Peter  Warbasse,   The  Codperalhe  Consumers'  Movement  in  the 
United  States.    The  Cooperative  League  of  America,  New  York,  1919. 


i68 


READINGS  IN  AMERICAN  DEMOCRACY 


Cooperation 
in  Wiscon- 
sin, Minne- 
sota, the 
Dakotas 
and  Mon- 
tana. 


Cooperation 
in  the 
Puget 
Sound 
section. 


Cooperation 
in  Cali- 
fornia. 


conducts  a  school  with  400  Polish  students.  This  society  has  a 
capital  of  $500,000.  .  .  . 

Wisconsin,  Minnesota,  the  Dakotas,  and  Montana  are,  perhaps, 
more  thoroughly  permeated  with  the  spirit  of  cooperation  than  any 
other  section  of  the  country.  An  example  of  the  method  of  operation 
is  the  Silverleaf,  North  Dakota,  Society.  A  small  group  of  farmers 
subscribed  $200  each.  They  bought  out  two  merchants  in  the  nearest 
town.  One  building  was  remodeled  and  used  as  a  store,  warehouse 
and  creamery;   the  other  is  used  as  a  community  center.  .  .  . 

The  Northwest  has  a  vigorous  movement  around  Puget  Sound. 
The  powerful  labor  organizations  of  Seattle  have  become  interested 
in  cooperation.  Things  are  happening  rapidly.  The  Seattle  society 
bought  a  store  doing  a  business  of  $4; 200  a  month.  They  started  in 
June,  1 91 8,  and  increased  the  business  to  $7,000  a  month.  They 
then  took  over  the  city  market,  and  during  the  first  30  weeks  did 
a  business  of  $500,000.  Now  their  meat  business  alone  amounts 
to  $70,000  a  month.  .  .  .  During  the  past  few  months,  they  have 
gone  ahead  and  organized  their  slaughter  house  where  they  kill  the 
animals  supphed  by  their  own  agricultural  members.  Most  of 
their  fruit  and  vegetables  are  supplied  by  their  own  members.  Their 
market  is  a  concrete  btiilding  with  its  own  ice  plant  and  cold  storage. 

Among  these  Seattle  cooperatives  are  found  a  laundry,  printing 
plant,  milk  condensary,  several  shingle  mills,  fish  cannery  and  recrea- 
tion houses.  Behind  them  is  the  support  of  the  labor  unions.  A 
single  union  contributed  $12,000  to  their  total  $41,000  paid  up  capital. 
The  Puget  Sound  Cooperative  Wholesale,  a  federation  of  the  societies 
about  Seattle,  was  organized  in  1918.  .  .  . 

An  older  cooperative  movement   is  found  in   California.     The 

Rochdale  movement  was  started  there  fully  twenty  years  ago.     It 

experienced  many  vicissitudes.     A  wholesale  was  organized  but  it 

failed  to  give  substantial  help.    Then  the  Pacific  Cooperative  League 

was  incorporated  in  1913  as  a  propaganda  and  sustaining  organiza" 

I* 

tion.     This  has  given  decided  strength  to  the  movement.     Dunng 

the  first  four  years  more  than  iioo  associate  members  joined  the 

League.    In  1918  a  significant  move  was  made:  the  California  Union 

of  Producers  and  Consumers  was  created.    The  three  organizations 

which  enter  into  its  composition  are  the  Farmers'  Educational  and  Co- 


PROFIT  SHARING  AND   COOPERATION  1 69 

operative  Union,  the  Pacific  Cooperative  League  and  the  CaUfornia 
State  Federation  of  Labor.  .  .  . 

71.   Examples  of  unsuccessful  cooperation  ^ 

The   Cooperative   League   of  America    believes    that    producers'   Two  types 
cooperation  is  generally  a  success  when  engaged  in  by  consumers'   °   P™" 
societies,  and  when  the  product  is  intended,  not  for  the  general  mar-   operation, 
ket,  but  for  the  exclusive  use  of  members  of  these  consumers'  societies. 
The  League  believes,  on  the  other  hand,  that  producers'  cooperation 
is  universally  a  failure  when  engaged  in  by  persons  not  members  of 
a  consumers'  society,  and  when  the  aim  is  to  produce  for  the  general 
market  rather  than  exclusively  for  members  of  a  consumers'  society. 
In  -the  following  selection,  Mr.  Warbasse  illustrates  the  failure  of 
this  second  type  of  producers'  cooperation: 

We  must  face  the  facts.     The  cooperative  producers'  factory  has   Failure 

failed.    After  a  hundred  years  of  painful  experimenting,  history  shows   '^  .       ,. 

■>  ^  f  o>  J  cooperative 

that  when  a  group  of  workers  organize  and  control  their  product,  producers' 
their  motive  is  to  get  as  much  as  they  can  for  it.  The  interest  of  the  ^'^'^^ 
small  group  of  workers  is  to  exploit  the  great  mass  of  consumers. 
Even  though  they  are  less  ruthless,  and  give  better  value  than  capi- 
talistic producers,  the  main  fact  still  stands.  They  seU  their  product 
in  competition  with  capitahstic  producers,  and  no  matter  how  un- 
selfish and  ideal  their  original  plan  has  been,  they  tend  ultimately 
to  become  animated  by  the  same  spirit  of  trade  as  animates  the 
capitahst. 

The  history  of  the  cooperative  producers'  factory  in  the  European   illustrated 
countries  is  in  Mne  with  the  above  facts.    The  United  States  is  not   ^^^*  ^^  ^^_ 
without  its  examples.     From  1845  down  to  the  present  time,  such   operation  in 
organizations  have  come  and  gone,  and  left  their  groups  of  sad  and   states^from 
disillusioned  workers  standing  by  the  wayside.  1845  to 

The  Workingmen's  Protective  Union,  the  Sovereigns  of  Industry,   ^/"^^^"^ 
the  Patrons  of  Husbandry,  and  the  Knights  of  Labor,  all  organized 
cooperative  producers'  enterprises.    The  latter  had  several  boot  and 
shoe  factories  in  New  England  between  1875  and  1885.    These  at- 
tempts at  cooperative  industry  contributed  largely  to  the  breaking 

•  From  James  Peter  Warbasse,  Producers'  Cooperative  Industries.    The  Cooper- 
ative League  of  America,  New  York,  1921. 


lyo  READINGS  IN  AMERICAN  DEMOCRACY 

down  of  this  splendid  old  organization.  Printing  societies,  iron 
foundries,  cloth  mills,  glass  factories,  laundries,  clothing  factories,  and 
box  factories,  have  each  passed  into  history. 

Other  producers'  cooperative  enterprises  in  the  United  States 
have  made  furniture,  underwear,  brooms,  coal,  nails,  pipes,  lumber, 
pottery,  soap,  stoves,  tobacco,  and  most  every  other  American  prod- 
uct. At  the  organization  of  many  of  these,  twenty-five,  fifty  and 
seventy-five  years  ago,  the  same  language  was  used  and  the  same 
plans  were  made  as  we  find  in  the  case  of  groups  of  workers  now 
bhndly  planning  producers'  industries. 

The  Cooperative  Stove  Works  of  Troy,  N.  Y.,  founded  as  the 
result  of  a  strike  in  1866,  developed  a  capital  of  $106,000  in  twenty- 
five  years,  but  by  that  time  there  were  but  ten  of  the  original  workers 
in  the  concern,  and  six  men  owned  more  than  half  of  the  stock.  The 
same  happened  in  the  Cooperative  Foundry  of  Rochester,  N.  Y.; 
organized  in  1867,  it  grew  till  it  had  a  capital  of  $200,000  twenty  years 
later  and  was  doing  a  business  of  $350,000  a  year;  but  it  ended  by 
becoming  a  capitalistic  stock  company  owned  by  thirty-five  stock- 
holders.   A  similar  history  follows  the  cigar  and  glove  factories. 

The  Cooperative  Hat  industry  of  Philadelphia  was  started  in 
1887  and  went  the  way  of  the  rest.  A  cooperative  hat  factory  in 
New  York  had  capital,  enthusiasm  and  ideaUsm,  but  it  failed  for 
want  of  an  organized  market  of  consumers.  The  Cooperative  Barrel 
Works  of  Minneapohs,  organized  in  1874,  had  by-laws  which  voiced 
ideal  standards  of  industry,  and  every  condition  surrounded  their 
enterprise  to  make  for  success;    [but  they  ultimately  failed].  .  .  . 

In  191 9  the  Brotherhood  of  Maintenance  of  Way  Employees 
and  Railway  Shopmen  invested  around  a  milhon  dollars  in  factories 
for  the  manufacture  of  gloves,  hosiery,  and  underwear.  Although 
called  cooperative,  Uke  all  of  the  above  enterprises,  they  were  really 
not  cooperative.  The  Cooperative  League  of  America  advised 
against  the  course  they  were  entering  upon;  but  oblivious  of  a  hun- 
dred years  of  failure  they  went  ahead,  and  the  poorest  paid  of  the 
Railroad  Brotherhoods  in  less  than  a  year  have  sunk  theij:  hard- 
earned  savings  in  a  hopeless  failure. 


PROFIT  SHARING  AND   COOPERATION  17 1 

72.   The  social  benefits  of  cooperation  ^ 

As  has  been  pointed  out,  one  of  the  most  significant  forms  of  Benefits  of 

cooperation   is    consumers'    cooperation.     Where   practicable,    this  consumers' 

cooperatioa 
form   of   cooperation   has   several   economic   advantages,   of  which 

the  two  most  important  are  probably  the  following:  first,  the  coop- 
erative store  enables  consumers  to  get  commodities  at  a  lower  price 
than  would  be  possible  were  they  obhged  to  buy  those  commodities 
of  a  non-cooperative  store.  Second,  to  the  extent  that  the  cooperative 
store  eUminates  unnecessary  middlemen,  the  productivity  of  the 
community  may  be  increased.  Aside  from  these  and  other  eco- 
nomic advantages,  the  cooperative  store  confers  a  number  of  social 
benefits,  which  Mr.  Fay  outlines  in  the  following  passage: 

[In  the  management  of  the   cooperative  store,]  every  member   The  social 
has  one  vote  in  the  general  assembly,  and  no  one  has  more  than  one   ^^"^^^5  of 

the  cooper- 
vote.  .  .  .  No  doubt,  as  a  rule,  only  the  few  enthusiasts  are  regular   ative  store: 

attendants,  but  there  is  not  here,  as  in  an  ordinary  company's  meeting, 
the  same  probability  that  the  audience  will  be  overawed  by  one  or 
two  big  men.  From  membership  to  a  seat  on  the  committee,  from 
the  committee  to  the  presidency,  from  the  presidency  to  a  director- 
ship on  the  Board  of  the  Wholesale  Federation  on  the  one  hand,  or 
on  the  Central  Board  of  the  Cooperative  Union  on  the  other,  there 
is  a  ladder  of  responsibiUty  vhich  the  intelligent  working  man  may  (i) 

climb.  ...  In  proportion  as  industr>^  generally  becomes  more  cen-   ^  teaches 
tralized  and  the  working  man  more  rigidly  fixed  to  the  machine,  the   man  self- 
cooperative   society  becomes   more  valuable  as  a  corrective  to  the   government, 
narrowness  of  his  outlook  as  a  worker.     The  chief  business  duties  of 
the  committee  are  to  control  the  manager,  who  fixes  prices  and  is 
generally  given  a  fairly  free  hand  so  long  as  he  makes  the    expected 
dividend,  and  to  keep  a  watch  over  ingoings  and  outgoings.  .  .  . 

It  is  unfortunately  considered  among  most  classes  a  pardonable,  (2) 

if  not  a  heroic,  thing  to  trade  on  the  credit  of  the  storekeeper.     The   }^  •       II 
'  "  ^  larizes  the 

cooperative  store,  however,    being  an  association  of  working  men,   working 
can  forcibly  impress  on  each  working  man,   as  he  enters  the  society,    ^'^f^^  ^^"^ 
that  indebtedness  at  the  store  is  an  indirect  form  of  dishonesty  to-   ments. 

*  From  C.  R.  Fay,  Cooperation  at  Home  and  Abroad.    P.  S.  King  &  Son,  London. 
1920;  pp.  322-324,  338,  330-331- 


172 


READINGS  IN  AMERICAN  DEMOCRACY 


(3) 
It  encour- 
ages thrift. 


(4) 
It  furthers 
the  educa- 
tion of  the 
cooper- 
atives. 


wards  his  working-class  fellows.  The  first  members  of  a  store  are 
generally  seriously- minded  men  who  recognize  the  risk  of  indebted- 
ness. .  .  .  They  know  their  members  in  a  way  that  the  ordinary 
shopkeeper  cannot  know  his  changing  circle  of  customers.  Since 
all  members  must  hold  at  least  one  share,  the  store  has  a  powerful 
lever  for  compelling  obedience  to  its  n4e3.  As  soon  as  the  working 
class  become  habituated  to  cash  payments,  they  continue  because 
they  reahze  its  advantages.  ... 

[The  payment  of  a  dividend  by  a  cooperative  store  encourages 
thrift  on  the  part  of  members.]  From  the  increased  trade  at  the  stores 
immediately  after  the  payment  of  profits,  [in  the  form  of  dividends], 
it  is  clear  that  many  of  the  members  depend  on  these  profits  as  a  means 
to  re-clothe,  re-furnish  and  add  generally  to  the  comfort  of  their 
homes.  Thus  the  money  saved  at  the  stores  and  periodically  spent 
gives  a  new  fillip  to  trade.  It  is  also  well  knowTi  that  many  cooper- 
ative working  men  depend  upon  the  store  profit  to  pay  their  rent.  .  .  . 
In  many  [English]  towns  building  societies  grant  loans  to  working 
men  for  the  purpose  of  purchasing  their  houses.  The  profit  from  the 
cooperative  store  is  frequently  used  to  meet  the  instalments  of  the 
loan.  Many  have  in  this  way  become  the  proprietors  of  their  own 
homes  without  effort.  .  .  . 

[An  important  social  aim  of  cooperation  is]  the  training  of  men 
and  women  to  take  part  in  industrial  and  social  reforms  and  munici- 
pal life  generally.  The  work  done  may  perhaps  be  classified  under 
three  heads:  (i)  cooperation:  instruction  in  its  history  and  prin- 
ciples; (2)  general:  Hbraries  and  lectures;  (3)  recreation:  reading- 
rooms,  concerts,  recreation  clubs,  excursions.  As  I  have  said,  the 
attention  thus  paid  to  social  education  distinguishes  in  particular 
British  cooperation.  ... 


Questions  on  the  foregoing  Readings 

1.  Define  profit  sharing. 

2.  How   many  establishments  in   the   United   States   were   applying 

the  profit-sharing  principle  in  1916? 

3.  What    proportion    of    these    establishments    were    manufacturing 

concerns? 


PROFIT  SHARING  AND  COOPERATION  173 

4.  Name    some    of    the   states   in   which   these   establishments   were 

located. 

5.  How  did  the  National  Industrial  Conference  Board  test  the  practi- 

cability of  profit  sharing? 

6.  Give  an  instance  of  where  profit  sharing  has  resulted  in  increased 

loyalty  and  cooperation  on  the  part  of  the  employees. 

7.  Illustrate  the  way  in  which  profit  sharing  may  reduce  the  labor 

turnover  in  an  industrial  establishment. 

8.  Give  an  example  of  profit  sharing  being  abandoned  because  of 

the  opposition  of  the  trade  union. 

9.  Give  an  e.xample  in  which  profit  sharing  has  promoted  thrift. 

10.  Give  an  example  in  which  profit  sharing  has  been  abandoned  be- 

cause of  its  failure  to  eliminate  labor  troubles. 

11.  What  was  the  experience  of  Welshans  and  McEwans  of  Omaha, 

Neb.,  with  profit  sharing? 

12.  What  opinion  was  expressed  by  the  Watertown   (N.   Y.)   Steam 

Engine  Company  with  regard   to  profit  sharing? 

13.  Has   cooperation   developed    more   or   less   slowly   in   the    United 

States  than  in  Great  Britain  and  on  the  continent  of  Europe? 

14.  What  is  the  nature  of  the  Tri-State  Co-operative  Society? 

15.  Give  an  example  of  successful  cooperation  in  Illinois. 

16.  What  can  be  said  as  to  cooperation  in  the  Puget  Sound  section? 

17.  Trace,  briefly,  the  development  of  cooperation  in  California. 

18.  What  are  the  two  types  of  producers'  cooperation? 

19.  Which,   according  to   the    Co-operative   League   of   America,   has 

proved    successful?      Which    has    proved    an    almost    universal 
failure? 

20.  Give   some   examples   of   unsuccessful   producers'   cooperation   in 

the  United  States. 

21.  Name  two  economic  benefits  of  the  successful  cooperative  store. 

22.  Explain  how  the  cooperative  store  teaches  self-government. 

23.  To  what  extent  does  the  cooperative  store  teach  thrift? 

24.  What  part  may  cooperation  play  in  social  education?     In   what 

country  does  cooperation  lay  particular  stress  upon  this  type 
of  education? 


CHAPTER  XIII 
THE  GENERAL  NATURE  OF  SOCIALISM 


Nature  of 
the  socialist 
or  labor 
theory  of 
value. 


Labor  a 
measure 
of  value, 


73.   Socialist  theory  of  value  ^ 

In  spite  of  the  enormous  amount  of  time  and  energy  spent  in  dis- 
cussing socialism,  astonishingly  little  attention  has  been  paid  to  the 
socialist  theory  of  value.  And  yet  this  theory  of  value  is  the  basis 
and  foundation  of  all  sociaUst  doctrine.  This  was  recognized  by 
Karl  Marx,  the  "father"  of  modern  socialism,  and  he  accordingly 
began  his  great  work  Capital  with  a  development  of  what  has 
become  generally  known  as  the  socialist  or  labor  theory  of  value. 
Marx  points  out  that  all  commodities  have  size,  weight,  color  and 
other  physical  properties,  but  that  these  properties  have  no  direct 
relation  to  the  exchange  value  of  commodities.  He  then  declares 
that  one  property  is  characteristic  of  all  commodities,  i.e.  they  are 
produced  by  human  labor.  His  reasoning  soon  becomes  both  com- 
plex and  contradictory,  but  in  essence  it  amounts  to  this:  com- 
modities tend  to  have  exchange  value  in  proportion  as  socially  neces- 
sary labor  has  been  expended  upon  them.  In  the  following  extract 
from  his  celebrated  book  Capital,  Marx  explains  what  he  means 
by  this  statement: 

A  .  .  .  useful  article,  therefore,  has  value  only  because  human 
labor  in  the  abstract  has  been  embodied  or  materialized  in  it.  How, 
then,  is  the  magnitude  of  this  value  to  be  measured?  Plainly,  by  the 
quantity  of  the  value-creating  substance,  the  labor,  contained  in 
the  article.  The  quantity  of  labor,  however,  is  measured  by  its  dura- 
tion, and  labor-time  in  its  turn  finds  its  standard  in  weeks,  days, 
and  hours. 

Some  people  might  think  that  if  the  value  of  a  commodity  is  deter- 
mined by  the  quantity  of  labor  spent  on  it,  the  more  idle  and  un- 

1  From  Karl  Marx,  Capital.  Swan,  Sonnenschein,  Lowrey  and  Co.,  London, 
1887.    Vol.  I,  Part  I,  Chapter  i,  Section  i. 

174 


THE   GENERAL  NATURE  OF  SOCIALISM  1 75 

skilful  the  laborer,  the  more  valuable  would  his  commodity  be,  because   bnt  value 

more  time  would  be  required  in  its  production.    The  labor,  however,   *^  i™^K^"th 

that  forms  the  substance  of  value,  is  homogeneous  human  labor,   amount  of 

expenditure  of  one  uniform  labor  power.    The  total  labor-power  of    f^      .  „  "^ 
^  _  '^  ^  IS  socially 

society,  which  is  embodied  in  the  sum  total  of  the  values  of  all  com-   necessary  to 

modities  produced  by  that  societv,  counts  here  as  one  homogeneous   Produce  the 
^  ■'  commodity 

mass  of  human  labor-power,  composed  though  it  be  of  innumerable   in  question. 

individual  units.     Each  of  these  units  is  the  same  as  any  other,  so 

far  as  it  has  the  character  of  the  average  labor-power  of  society, 

and  takes  effect  as  such;   that  is,  so  far  as  it  requires  for  producing 

a  commodity  no  more  time  than  is  needed  on  an  average,  no  more 

than  is  socially  necessary. 

The  labor-time  socially  necessary  is  that  required  to  produce  an  An  example, 
article  under  the  normal  conditions  of  production,   and  with  the 
average  degree  of  skill  and  intensity  prevalent  at  the  time.     The 
introduction  of  power  looms  into  England  probably  reduced  by  one-  « 

half  the  labor  required  to  weave  a  given  quantity  of  yarn  into  cloth. 
The  hand-loom  weavers,  as  a  matter  of  fact,  continued  to  require 
the  same  time  as  before;  but  for  all  that,  the  product  of  one  hour 
of  their  labor  represented  after  the  change  only  half  an  hour's  social 
labor,  and  consequently  fell  to  one-half  its  former  value. 

We  see  then  that  that  which  determines  the  magnitude  of  the   Conclusion, 
value  of  any  article  is  the  amount  of  labor  socially  necessary,  or 
the    labor-time    socially   necessary,    for    its   production.  .  .  .  Com- 
modities, therefore,  in  which  equal  quantities  of  labor  are  embodied, 
or  which  can  be  produced  in  the  same  time,  have  the  same  value.  .  .  . 


74.   The  laborer  creates  all  value  ^ 

Marx  built  a  complex  system  of  socialist   philosophy  upon  the   Significance 
principle  stated  in  the  foregoing  selection.    Omitting  the  complexities     .  [    .^!' j" 
and  qualifications  which  accompany  his  further  statement  of  this   above, 
principle,  he  believed  commodities  to  have  value  in  proportion  as 
socially  necessary  labor  has  been  expended  upon  them.     This  con- 
clusion arrived  at,  Marx  next  asserted  that  it  is  the  laborer,  and  the 

'  From  Karl  Marx,  Value,  Price  and  Profit.    Chas.  H.  Kerr  and  Co.,  Chicago, 
1908.     Chapter  viu. 


176 


READINGS  IN  AMERICAN  DEMOCRACY 


Suppose  a 
laborer 
needs  three 
shillings  to 
support 
himself  for 
a  single 
day,  and 
that  he  can 
earn  this 
amount  in 
six  hours. 

He  sells  his 
laboring 
power  to 
the  capital- 
ist for  three 
shillings. 


But  the 
latter  makes 
the  laborer 
work  more 
than  three 
shillings' 
worth,  i.e. 
more  than 
six  hours. 


laborer  alone,  who  is  responsible  for  the  value  of  commodities.    This 
second  point  he  developed  in  the  following  language: 

Now  suppose  that  the  average  amount  of  the  daily  necessaries  of 
a  laboring  man  require  six  hours  of  average  labor  for  their  production. 
Suppose,  moreover,  six  hours  of  average  labor  to  be  also  realized 
in  a  quantity  of  gold  equal  to  three  shillings.  Then  three  shiUings 
would  be  the  price,  or  the  monetary  expression  of  the  daily  value 
of  that  man's  laboring  power.  If  he  worked  daily  six  hours  he  would 
daily  produce  a  value  sufficient  to  buy  the  average  amount  of  his 
daily  necessaries,  or  to  maintain  himself  as  a  laboring  man. 

But  our  man  is  a  wages  laborer.  He  must,  therefore,  sell  his 
laboring  power  to  a  capitaHst.  If  he  sells  it  at  three  shiUings  daily, 
or  eighteen  shillings  weekly,  he  sells  it  at  its  value.  Suppose  him  to 
be  a  spinner.  If  he  works  six  hours  daily  he  will  add  to  the  cotton 
a  value  of  three  shilHngs  daily.  This  value,  daily  added  by  him, 
would  be  an  exact  equivalent  for  the  wages,  or  the  price  of  his  laboring 
power,  received  daily.  But  in  that  case  no  surplus  value  or  surplus 
produce  whatever  would  go  to  the  capitalist.  Here,  then,  we  come 
to  the  rub. 

In  buying  the  laboring  power  of  the  workmen,  and  paying  its 
value,  the  capitalist,  Hke  every  other  purchaser,  has  acquired  the 
right  to  consume  or  use  the  commodity  bought.  You  consume  or 
use  the  laboring  power  of  a  man  by  making  him  work,  as  you  consume 
or  use  a  machine  by  making  it  run.  By  buying  the  daily  or  weekly 
value  of  the  laboring  power  of  the  workman,  the  capitahst  has,  there- 
fore, acquired  the  right  to  use  or  make  that  laboring  power  work 
during  the  whole  day  or  week.  .  .  . 

[Now]  the  value  of  the  laboring  power  is  determined  by  the  quantity 
of  labor  necessary  to  maintain  or  reproduce  it,  but  the  use  of  that 
laboring  power  is  only  hmited  by  the  active  energies  and  physical 
strength  of  the  laborer.  The  daily  or  weekly  value  of  the  laboring 
power  is  quite  distinct  from  the  daily  or  weekly  exercise  of  that  power, 
the  same  as  the  food  a  horse  wants  and  the  time  it  can  carry  the 
horseman  are  quite  distinct.  The  quantity  of  labor  by  which  the  value 
of  the  workman's  laboring  power  is  Hmited  forms  by  no  means  a  limit 
to  the  quantity  of  labor  which  his  laboring  power  is  apt  to  perform. 

Take  the  example  of  our  spinner.    We  have  seen  that,  to  repro- 


THE  GENERAL  NATURE  OF  SOCIALISM  1 77 

duce  daily  his  laboring  power,  he  must  daily  reproduce  a  value  of   The  laborer 

three  shillings,  which  he  will  do  by  working  six  hours  daily.     But   J"^^  ^^""^ 
,.,,,.  his  wages 

this  does  not  disable  him  from  working  ten  or  twelve  or  more  hours   in  six  hours 

a  day.     But  by  paying  the  daily  or  weekly  value  of  the  spinner's    ^"j!^^*-  ^^ 
laboring  power  the  capitalist  has  acquired  the  right  of  using  that   to  work,  say, 
laboring  power  during  the  whole  day  or  week.     He  will,  therefore,   ^"other  six 
make  him  work  say,  daily,  twelve  hours.    Over  and  above  the  six  hours   create  a 
required  to  replace  his  wages,  or  the  value  of  his  laboring  power,    ^^PJ^^^  prod- 
he  v.'ill,  therefore,  have  to  work  six  other  hours,  which  surplus  labor   capitaUst. 
will  realize  itself  in  a  surplus  value  and  a  surplus  produce. 

If  our  spinner,  for  example,  by  his  daily  labor  of  six  hours,  added  By  this 
three  shillings'  value  to  the  cotton,  a  value  forming  an  exact  equiva-  caouT'  t  ^ 
lent  to  his  wages,  he  will,  in  twelve  hours,  add  six  shillings'  worth 
to  the  cotton,  and  produce  a  proportional  surplus  of  yarn.  As  he  has 
sold  his  laboring  power  to  the  capitalist,  the  whole  value  or  produce 
created  by  him  belongs  to  the  capitaUst,  the  owner  ...  of  his  labor- 
ing power.  By  advancing  three  shillings,  the  capitaHst  will,  there- 
fore, reaUze  a  value  of  six  shillings,  because,  advancing  a  value  in 
which  six  hours  of  labor  are  crystallized,  he  will  receive  in  return 
a  value  in  which  twelve  hours  of  labor  are  crystallized. 

By  repeating  this  same  process  daily,  the  capitalist  will  daily  ad-   lives  on  the 

vance  three  shillings  and  daily  pocket  six  shillings,  one-half  of  which   Produce 

•11  1111,  which  the 

Will  go  to  pay  wages  anew,  and  the  other  half  of  which  will  form   laborer 

surplus  value,  for  which  the  capitalist  pays  no  equivalent.    It  is  this   ^'""*^ 

.     ,  ,    ,  creates. 

sort  of  exchange  between  capital  and  labor  upon  which  capitalistic 

production,  or  the  wages  system,  is  founded.  .  .  . 

75.   The  capitalist  exploits  the  laborer  ' 
In  the  above  selection  Marx  claims  that  although  both  laborers   The  capi- 

and  capitalists  are  intimately  connected  with  the  productive  process,   ^^''^^  ^ 

parasite, 
the  value  of  the  commodities  produced  is  due  entirely  to  the  activities 

of  the  laborers.  The  capitalist  is  a  parasite  who  has  fastened  him- 
self upon  the  laborers  and  lives  by  exploiting  them.  In  the  celebrated 
Communist  Manifesto,  published  in  1848  by  Karl  ISIarx  and  Frederick 
Engels,  this  view  is  developed  as  follows: 

*  From  Karl  Marx  and  Frederick  Engels,  The  Communisl  Manifesto.    London,    ' 
1848. 


178 


READINGS  IN  AMERICAN  DEMOCRACY 


Capitalism 
means  low 
wages. 


The  laborer 
is  a  slave. 


The  lower 
strata  of 
the  middle 
class  tend 
to  sink  into 
the  pro- 
letariat. 


Owing  to  the  extensive  use  of  machinery  and  to  the  division  of 
labor,  the  work  of  the  proletarians  ^  has  lost  all  individual  character, 
and,  consequently,  all  charm  for  the  workman.  He  becomes  an 
appendage  of  the  machine,  and  it  is  only  the  most  simple,  most  mo- 
notonous, and  most  easily  acquired  knack,  that  is  required  of  him. 
Hence,  the  cost  of  production  of  a  workman  is  restricted  almost 
entirely  to  the  means  of  subsistence  that  he  requires  for  his  main- 
tenance, and  for  the  propagation  of  his  race.  But  the  price  of  a  com- 
modity, and  therefore  also  of  labor,  is  equal  to  its  cost  of  production. 
In  proportion,  therefore,  as  the  reptilsiveness  of  the  work  increases, 
the  wage  decreases.  .  .  . 

Modern  industry  has  converted  the  Httle  work-shop  of  the  patri- 
archal master  into  the  great  factory  of  the  industrial  capitahst. 
Masses  of  laborers,  crowded  into  the  factory,  are  organized  like 
soldiers.  As  privates  of  the  industrial  army  they  are  placed  under 
the  command  of  a  perfect  hierarchy  of  officers  and  sergeants.  Not 
only  are  they  slaves  of  the  bourgeois  class,  and  of  the  bourgeois  State, 
they  are  daUy  and  hourly  enslaved  by  the  machine,  by  the  over-looker, 
and,  above  all,  by  the  individual  bourgeois  manufacturer  himself.  .  .  . 

No  sooner  is  the  exploitation  of  the  laborer  by  the  manufacturer 
so  far  at  an  end  that  he  receives  his  wages  in  cash,  than  he  is  set  upon 
by  the  other  portions  of  the  bourgeoisie,  the  landlord,  the  shop- 
keeper, the  pawnbroker,  etc. 

The  lower  strata  of  the  middle  class  —  the  small  tradespeople, 
shopkeepers,  and  retired  tradesmen  generally,  the  handicraftsmen 
and  peasants  —  all  these  sink  gradually  into  the  proletariat,  partly 
because  their  diminutive  capital  does  not  suffice  for  the  scale  on  which 
modern  industry  is  carried  on,  and  is  swamped  in  the  competition 
with  the  large  capitalists,  [and]  partly  because  their  specialized 
skill  is  rendered  worthless  by  new  methods  of  production.  Thus 
the  proletariat  is  recruited  from  all  classes  of  the  population.  .  .  . 

The  modern  laborer,  .  .  .  instead  of  rising  with  the  progress  of 
industry,  sinks  deeper  and  deeper  below  the  conditions  of  existence 

'  Socialists  make  extended  use  of  the  terms  "proletariat"  and  "bourgeoisie." 
By  proletariat  Marx  meant  the  class  of  modem  wage-laborers,  who,  having  no 
means  of  production  of  their  own,  are  reduced  to  selling  their  labor  power  in  order 
to  live.  By  bourgeoisie  is  meant  the  class  of  modern  capitalists,  the  owners  of  the 
means  of  production,  and  the  employers  of  wage-earners. 


THE  GENERAL  NATURE  OF  SOCIALISM  179 

of  his  own  class.     He  becomes  a  pauper,  and  pauperism  develops  The  bour- 
more  rapidly  than  population  and  wealth.     And  here  it  becomes   ^^^f^^ 

evident  that  the  bourgeoisie  is  unfit  any  longer  to  be  the  ruling  class   rulers  of 

"slaves" 
in  society  and  to  impose  its  conditions  of  existence  upon  society  as 

an  over-riding  law.    It  is  unfit  to  rule  because  it  is  incompetent  to 

assure  an  existence  to  its  slave  within  his  slavery,  because  it  cannot 

help  letting  him  sink  into  such  a  state  that  it  has  to  feed  him  instead 

of  being  fed  by  him.    Society  can  no  longer  live  under  this  bourgeoisie; 

in  other  words,  its  existence  is  no  longer  compatible  with  society.  ... 


76.   The  doctrine  of  class  struggle  ^ 

It  is  clear,  from  the  foregoing  selection,  that  Marx  and  Engels   The  doc- 
considered  the  interests  of  the  working  classes  to  be  in  opposition   ^""^^ 
to  those  of  the  group  which  they  call  capitahstic.     Indeed,  they   struggle 

went  further,  and  declared  that  all  history  is  the  record  of  struggles   .      }^,, 

■'  °°         inevitable 

between  various  classes.  This  tendency  to  class  struggle  they  at-  result, 
tempted  to  trace  historically,  and  to  connect  with  the  present-day 
antagonism  between  the  "wage-slave"  and  the  capitahst.  In  the 
following  selection,  Marx  and  Engels  develop  the  idea  of  class  struggle, 
and  conclude  that  it  must  inevitably  result  in  the  forcible  overthrow 
of  capitalism  by  the  working  classes: 

The  history  of  all  hitherto  existing  society  is  the  history  of  class   Universality 
struggles. 

Freeman  and  slave,  patrician  and  plebeian,  lord  and  serf,  guild- 
master  and  journeyman,  in  a  word  oppressor  and  oppressed,  stood 
in  constant  opposition  to  one  another,  carried  on  an  uninterrupted, 
now  hidden,  now  open  fight,  that  each  time  ended,  either  in  the 
revolutionary  reconstitution  of  society  at  large,  or  in  the  common 
ruin  of  the  contending  classes.  .  .  . 

Our  epoch,  the  epoch  of  the  bourgeois,  possesses,  however,  this   Class 

distinctive  feature:   it  has  simplified  the  class  antagonisms.    Society   ^^'^sgle 

^  .  under  cap- 

as  a  whole  is  more  and  more  splitting  up  into  two  great  hostile  camps,    italism, 

into  two  great  classes  directly  facing  each  other:    bourgeoisie  and 

proletariat.  .  .  . 


of  class 
struggle. 


*  From  Karl  Marx  and  Frederick  Engels,  The  Communist  Manifesio.    London, 
1848. 


i8o 


READINGS  IN  AMERICAN  DEMOCRACY 


and  the 
part  played 
therein  by 
the  bour- 
geoisie. 


The  pro- 
letariat des- 
tined to 
destroy  the 
bourgeoisie. 


Early  stages 
of  the 
struggle. 


The  struggle 

becomes 

national. 


Function 
of  the 
Commun- 
ists. 


The  call  for 
revolution. 


The  bourgeoisie,  wherever  it  has  got  the  upper  hand,  has  put 
an  end  to  all  feudal,  patriarchal,  idyllic  relations.  It  has  pitilessly 
torn  asunder  the  motley  feudal  ties  that  bound  man  to  his  "natural 
superiors,"  and  has  left  remaining  no  other  nexus  between  man  and 
man  than  naked  self-interest,  callous,  "cash  payment."  ...  It  has 
resolved  personal  worth  into  exchange  value,  and  in  place  of  the 
numberless  indefeasible  chartered  freedoms,  has  set  up  that  single, 
unconscionable  freedom  —  free  trade.  In  one  word,  for  exploitation, 
veiled  by  religious  and  poHtical  illusions,  it  has  substituted  naked, 
shameless,  direct,  brutal  exploitation.  .  .  . 

The  weapons  with  which  the  bourgeoisie  felled  feudaUsm  to  the 
ground  are  now  turned  against  the  bourgeoisie  itself.  But  not  only 
has  the  bourgeoisie  forged  the  weapons  that  bring  death  to  itself; 
it  has  also  called  into  existence  the  men  who  are  to  wield  those  weapons 
• —  the  modern  working  class  —  the  proletarians.  .  .  . 

The  proletariat  goes  through  various  stages  of  development.  With 
its  birth  begins  its  struggle  with  the  bourgeoisie.  At  first  the  con- 
test is  carried  on  by  individual  laborers,  then  by  the  workpeople 
of  a  factory,  then  by  the  operatives  of  one  trade,  in  one  locality, 
against  the  individual  bourgeois  who  directly  exploits  them.  ...  At 
this  stage  the  laborers  still  form  an  incoherent  mass  scattered  over 
the  whole  country,  and  broken  up  by  their  mutual  competition.  .  .  . 

Now  and  then  the  workers  are  victorious,  but  only  for  a  time. 
The  real  fruit  of  their  battles  lies  not  in  the  immediate  result  but  in 
the  ever  improved  means  of  communication  that  are  created  in 
modern  industry  and  that  place  the  workers  of  different  locaHties 
in  contact  with  one  another.  It  was  just  this  contact  that  was  needed 
to  centralize  the  numerous  local  struggles,  all  of  the  same  character, 
into  one  national  struggle  between  classes.  .  .  . 

In  what  relation  do  the  Communists  stand  to  the  proletarians  as 
a  whole?  .  .  .  The  immediate  aim  of  the  Communists  is  the  same 
as  that  of  all  the  other  proletarian  parties:  formation  of  the  pro- 
letariat into  a  class,  overthrow  of  the  bourgeois  supremacy,  conquest 
of  political  power  by  the  proletariat.  .  .  . 

In  short,  the  Communists  everywhere  support  every  revolutionary 
movement  against  the  existing  social  and  political  order  of  things.  .  •  • 

The  Communists  disdain  to  conceal  their  views  and  aims.    They 


THE   GENERAL  NATURE  OF  SOCIALISM  l8l 

openly  declare  that  their  ends  can  be  attained  only  by  the  forcible 
overthrow  of  all   existing  social   conditions.     Let  the  ruling  class 
tremble  at  a  Communistic  revolution.    The  proletarians  have  nothing 
to  lose  but  their  chains.     They  have  a  world  to  win. 
Workingmen  of  all  countries  unite! 


77.   Immediate  aims  of  American  socialism  ^ 

Since  the  days  of  Marx  socialism  has  broken  up  into  a  large  num-  Funda- 
ber  of  groups,  known  under  widely  varying  names,  and  professing  '"^"t^' 
principles  which  show  considerable  diversity.     And  yet  the  teach-   purpose 

ines  of   these  various  organizations   are   fundamentally  the   same.    '^^^^^  ^"^ 

°  _  _  various 

In  every  case  the  doctrines  of  Karl  Marx  constitute  the  basis  of   socialist 
these  teachings,  and  in  every  case  the  immediate  aim  is  the  same  as  S''°"Ps- 
that  expressed  by  Marx:   the  abolition  of  society  as  it  exists  to-day. 
The  following  preamble  to  the  constitution  of  the  Socialist  Party  of 
America  may  be  taken  as  typical  of  the  immediate  aims  of  American 
socialism: 

[This  organization]  is  the  poUtical  expression  of  the  interests  of   Preamble  to 
the  workers  in  this  country,  and  is  part  of  the  international  working-        .  <^°'^^ti- 

J '  ^  .°      tution  of 

class  movement.  the  Social- 

The  economic  basis  of  present-day  society  is  the  private  ownership   ^f-     .'^^  °* 

and  control  of  the  socially  necessary  means  of  production,  and  the 

exploitation  of  the  workers  who  operate  these  means  of  production 

for  the  profit  of  those  who  own  them. 

The  interests  of  these  classes  are  diametrically  opposed.    It  is  the   The  basis 

interest  of  the  capitalist  class  to  maintain  the  present  system  and        ^    , 

struggle. 

to  obtain  for  themselves  the  largest  possible  share  of  the  product 
of  labor.  It  is  the  interest  of  the  working  class  to  improve  their 
conditions  of  life  and  get  the  largest  possible  share  of  their  own 
product  so  long  as  the  present  system  prevails,  and  to  end  this  sys- 
tem as  quickly  as  they  can. 

In  so  far  as  the  members  of  the  opposing  classes  become  conscious 

of  these  facts,  each  strives  to  advance  its  own  interest  as  against  the 

other.    It  is  this  active  conflict  which  we  describe  as  class  struggle. 

The  capitaUst  class,  by  controlling  the  old  political  parties,  con- 

^  From  the  Socialist  Party  of  America,  Preamble  to  the  National  Constitution. 


l82 


READINGS  IN  A^IERICAN  DEMOCRACY 


The  need 
for  politi- 
cal and 


economic 
organiza- 
tion. 


The  funda- 
mental and 


subordinate 
aims  of  the 
Socialist 
Party  of 
America. 


trols  the  powers  of  the  State  and  uses  them  to  secure  and  entrench 
its  position.  Without  such  control  of  the  State  its  position  of  eco- 
nomic power  would  be  untenable.  The  workers  must  wrest  the  control 
of  the  government  from  the  hands  of  the  masters  and  use  its  powers 
in  the  upbuUding  of  the  new  social  order  —  the  cooperative 
commonwealth. 

The  Sociahst  Party  seeks  to  organize  the  working  class  for  inde- 
pendent action  on  the  pohtical  field,  not  merely  for  the  betterment 
of  their  conditions,  but  also  and  above  all  with  the  revolutionary 
aim  of  putting  an  end  to  exploitation  and  class  rule.  Such  pohtical 
action  is  absolutely  necessary  to  the  emancipation  of  the  working 
class,  and  the  estabUshment  of  genuine  hberty  for  all. 

To  accomplish  this  aim,  it  is  necessary  that  the  working  class  be 
powerfully  and  sohdly  organized  also  on  the  economic  field,  to  struggle 
for  the  same  revolutionary  goal;  and  the  Sociahst  Party  pledges  its 
aid  in  the  task  of  promoting  such  industrial  organization  and  waging 
such  industrial  struggle  for  emancipation. 

The  fundamental  aim  of  the  Sociahst  Party  is  to  bring  about  the 
social  ownership  and  democratic  control  of  aU  the  necessary  means 
of  production  —  to  ehminate  profit,  rent  and  interest,  and  make 
it  impossible  for  any  to  share  in  the  product  without  sharing  the 
burden  of  labor  —  to  change  our  class  society  into  a  society  of  equals, 
in  which  the  interest  of  any  will  be  the  interest  of  all. 

As  subordinate  and  accessory  to  this  fundamental  aim,  it  supports 
every  measure  which  betters  the  conditions  of  the  working  class, 
and  which  increases  the  fighting  power  of  that  class  within  the  present 
system. 


Lack  of  a 

constructive 

program 

among 

socialists. 


78.   Ultimate  aims  of  American  socialism  ^ 

The  immediate  aims  of  socialism  are  to  secure  the  abolition  of 
society  as  it  exists  to-day.  In  view  of  this  fact,  it  is  important  to 
inquire  into  the  constructive  program  of  sociahsm,  for  it  would 
obviously  be  unwise  to  destroy  the  present  order  without  having 
ready  a  pretty  well  thought  out  system  to  substitute  for  it.  Un- 
fortunately, there  is  httle  or  nothing  in  the  way  of  a  constructive 

1  From  the  United  Communist  Party,  Statement  of  Principles.  Adopted  in 
convention,  1920. 


THE   GENERAL  NATURE  OF  SOCIALISM  1 83 

socialist  program.  What  is  sometimes  called  a  constructive  program 
is  generally  nothing  more  than  a  sociaUst  expression  of  desires,  with- 
out any  adequate  proof  of  how  these  are  to  be  attained.  A  fair 
sample  of  the  ultimate  aims  of  the  sociaHsts  is  the  following  state- 
ment by  an  American  sociaUst  group  caUing  itself  the  United 
Communist  Party: 

Under  capitalism  the  very  development  of  higher  productivity   Socialist 
is  ine\dtably  accompanied  by  an  intensification  of  the  bondage  and   desires 
oppression  of  the  workers.    The  machines  invented  to  serve  humanity   gard 
have  become  the  instruments  for  enslavement  of  the  producing  masses. 

[Socialism]  wiU  release  aU  the  productive  energies  for  the  common   to  produc- 
welfare  of  aU  the  people.     In  place  of  profit  as  the  animating  im-    ^'°'^' 
pulse  to  production  must  stand  the  needs  and  enjoyments  of  the 
producing   masses. 

The  right  and  the  obHgation  to  labor  —  service  toward  the  common 
enjoyment  of  all  —  this  shall  be  the  basis  of  citizenship  under  the 
[sociaUst]  regime. 

Education  of  the  masses  toward  better  social  service  and  toward   and  educa- 
higher  appreciation  of  the  enjoyments  of  hfe  is  the  foremost  item  in   ^^^'^■ 
the  [socialist]  transformation.    This  education  must  go  to  the  adult 
workers,  who  have   so  long  toiled  in  darkness,  as  weU  as  to  all  the 
children  of  the  nation. 

Education  under  [socialism],  as  already  in  process  of  development   The  ex- 

in  Russia,  takes  account  of  the  physical  welfare  of  the  children   f^f^/^  ?^ 
'  ^    -^  bolshevism 

along  with  their  mental  training.  Under  the  blockade  conditions  in  Russia, 
compelling  the  rationing  of  food,  it  has  been  the  children  who  have 
always  been  given  the  preference.  Tens  of  thousands  of  children 
of  the  poor  in  the  big  cities  have  been  fed  on  a  communal  basis.  .  .  . 
The  general  educational  system  includes  periods  for  aU  city  children 
in  the  country,  on  the  socialized  agricultural  estates,  while  the  village 
children,  in  turn,  will  be  brought  periodically  into  the  cities,  and  in 
this  way  education  is  made  to  include  contact  with  every  phase  of 
the  industrial,  institutional  and  cultural  hfe  of  the  nation. 

Art,  music,  the  stage  —  all  the  cultural  advantages  which  have 
been  held  aloof  for  the  enjoyment  of  the  privileged  few,  and  in  their 
more  vulgar  forms  have  been  used  to  deceive  and  cajole  the  masses 
—  become  [under  sociahsm]  the  institutions  of  the  working  masses. 


1 84  READINGS  IN  AMERICAN  DEMOCRACY 

Art  is  thereby  released  from  its  prostitution  to  exploiting  interests, 
and  becomes  imbued  with  new  inspiration  and  vitaHty. 
The  In  a  word,  the  working  class  will  have  at  its  disposal  all  that  civili- 

promise  of       zation  has  thus  far  produced  for  the  enhancement  of  individual  and 

socialism,  ... 

social  life.  The  better  orgamzation  of  the  industrial  and  social  sys- 
tem can  in  a  single  generation,  with  the  advanced  technique  and 
science  of  to-day,  achieve  more  toward  the  eradication  of  disease, 
crime,  depravity  and  superstition  than  has  been  accomplished  in 
aU   the   prior  centuries   together. 


Questions  on  the  foregoing  Readings 

1.  What  theory  constitutes  the  basis  of  all  socialist  doctrine? 

2.  What  great  socialist  leader  recognized  this  fact? 

3.  What,  in  essence,  is  Marx's  theory  of  value? 

4.  Explain  what  Marx  means  by  "  socially  necessary  "  labor-time. 

5.  What  is  Marx's  conclusion  with  regard  to  the  labor  theory  of  value? 

6.  What  statement  by  Marx  follows  logically  from  his  acceptance  of 

the  labor  theory  of  value? 

7.  Explain  how  the  laborer  produces  a  surplus. 

8.  Explain  how  the  capitalist   secures  this  surplus  produce, 
g.    What  does  Marx  say  as  to   wages  under  capitalism? 

ID.    What  does  he  mean  by  saying  that  the  laborer  is  a  slave? 

11.  Distinguish  betvveen  the  terms,  "  proletariat  "  and  "  bourgeoisie." 

12.  What  classes  of  society,  according  to  Marx,  tend  to  sink  into  the 

proletariat? 

13.  What  is  the  relation  of  history  to  the  doctrine  of  class  struggle? 

14.  What  part  have  the  bourgeoisie  played  in  the  class  struggle? 

15.  What  is  the  function  of  the  laboring  class  with  regard  to  the  class 

struggle? 

16.  Explain  the  aims  and  methods   of   Communism  (or  socialism),  as 

stated  by  Marx  and  Engels. 

1 7.  What  group  does  the  Socialist  Party  of  America  claim  to  represent? 

18.  For  what  purpose  does  this  party  urge  the  political  and  economic 

organization  of  the  working  class? 

19.  What  is  the  fundamental  aim  of  the  Socialist  Party  of  America? 

20.  What  is  the  nature  of  the  "  constructive  "  program  of  socialism? 

21.  Outline  the  desires  of  the  socialists  with  regard  to  production  and 

education. 

22.  What  claim  is  advanced  by   the  United   Communist  Party  with 

reference    to    the    ability    of    socialism    to    improve    the   lot   of 
humanity? 


CHAPTER  XIV 

MILITANT   SOCIALISM:     THE   LW.W. 

79.   Why  the  I.W.W.  organization  was  formed  ^ 
The  letters  I.  W.  W.  are  a  convenient  abbreviation  which  is  used   Origin  of 
to  designate  a  group  of  miHtant  sociahsts  calling  themselves  the   ^^^  I-W.W. 
Industrial  Workers  of  the  World.    This  sociahst  group  was  organized 
in  Chicago  in  1905,  by  a  number  of  radicals  who  felt  that  the  workers 
had  httle  or  nothing  to  gain  from  either  trade  unionism  or  political 
sociahsm.    This  point  of  view  is  illustrated  in  the  following  extracts 
from  the  manifesto  which  in  1905  called  a  convention  to  organize 
the  Industrial  Workers  of  the  World: 
The  worker,  wholly  separated  from  the  land  and  the  tools,  with   The  worker 

his  skill  in  craftsmanship  rendered  useless,  is  sunk  in  the  uniform   '■educed  to 

wage  Slav- 
mass  of  wage  slaves.  .  .  .  Shifted  hither  and  thither  by  the  de-   ery. 

mands  of  profit-takers,  the  laborer's  home  no  longer  exists.  In  this 
hopeless  condition  he  is  forced  to  accept  whatever  humihating  con- 
ditions his  master  may  impose.  .  .  .  Laborers  are  no  longer  classified 
by  differences  in  trade  skill,  but  the  employer  assigns  them  according 
to  the  machines  to  which  they  are  attached.  These  divisions,  far 
from  representing  differences  in  skill  or  interests  among  the  laborers, 
are  imposed  by  the  employers  that  workers  may  be  pitted  against  one 
another  and  spurred  to  greater  exertion  in  the  shop,  and  that  all 
resistance  to  capitalist  tyranny  may  be  weakened  by  artificial 
distinctions. 

While  encouraging  these  outgrown  divisions  among  the  workers,    in  the  class 
the  capitaHsts  carefully  adjust  themselves  to  the  new  conditions,    ^f^se'e, 
They  wipe  out  all  differences  among  themselves  and  present  a  united   ers  present 

front  in  their  war  upon  labor.     Through  employers'  associations,    ^  united 
1  1         .  1    1  ,  r  1      •    •  •      front,  while 

they  seek  to  crush,  with  brutal  force,  by  the  injunction  of  the  judi-   the  workers 

'  From  the  Manifesto  CallinR  a  Convention  to  Organize  the  Industrial  Workers    ^""^  divided, 
of  the  World.     Chicago,  Januarj',  1905. 

185 


i86 


READINGS  IN  AISIERICAN  DEMOCRACY 


An  illustra- 
tion of  this 
lack  of 
ixnity. 


The  di\dsion 
of  workers 
into  a 
large  num- 
ber of  trade 
unions  has 
injurious 
results. 


The  true 
solution  of 
the  workers' 
difSculties 
is  one  great 
industrial 
union, 


ciary,  and  the  use  of  military  power,  all  efforts  at  resistance.  .  . 
The  employers'  line  of  battle  and  methods  of  warfare  correspond  to 
the  solidarity  of  the  mechanical  and  industrial  concentration,  while 
laborers  still  form  their  fighting  organization  on  hnes  of  long-gone 
trade  divisions. 

The  battles  of  the  past  emphasize  this  lesson.  The  textile  workers 
of  Lowell,  Philadelphia,  and  Fall  River;  the  butchers  of  Chicago, 
weakened  by  the  disintegrating  effects  of  trade  divisions;  the  wa- 
chinists  on  the  Santa  Fe,  unsupported  by  their  fellow  workers  subject 
to  the  same  masters;  the  long-struggling  miners  of  Colorado,  ham- 
pered by  a  lack  of  unity  and  solidarity  upon  the  industrial  battle- 
field, all  bear  witness  to  the  helplessness  and  impotency  of  labor  as 
at  present  organized. 

This  worn-out  and  corrupt  system  offers  no  promise  of  improvement 
and  adaptation.  .  .  .  This  system  offers  only  a  perpetual  struggle 
for  slight  rehef  within  wage  slavery.  .  .  . 

It  shatters  the  ranks  of  the  workers  into  fragments,  rendering 
them  helpless  and  impotent  on  the  industrial  battlefield. 

Separation  of  craft  from  craft  renders  industrial  and  financial 
solidarity  impossible. 

Union  men  scab  upon  union  men;  hatred  of  workers  for  workers 
is  engendered,  and  the  workers  are  delivered  helpless  and  disinte- 
grated into  the  hands  of  the  capitaUsts.  .  .  . 

Craft    divisions   foster   pohtical    ignorance   among   the   workers, 
thus  dividing  their  class  at  the  ballot  box,  as  weU  as  in  the  shop,! 
mine  and  factory. 

Craft  unions  may  be  and  have  been  used  to  assist  employers  in 
the  establishment  of  monopoUes  and  the  raising  of  prices.  .  .  . 

Previous  efforts  for  the  betterment  of  the  working  class  have 
proven  abortive  because  limited  in  scope  and  disconnected  in  action. 

Universal  economic  evils  afflicting  the  working  class  can  be  eradi- 
cated only  by  a  universal  working  class  movement.  .  .  . 

A  movement  to  fulfill  these  conditions  must  consist  of  one  great 
industrial  union  embracing  all  industries  —  providing  for  craft  au- 
tonomy locally,  industrial  autonomy  internationally,  and  working 
class  unity  generally. 

It  must  be  founded  on  the  class  struggle,  and  its  general  adminis- 


MILITANT   SOCI.\LISM:     THE   I.    W.   W. 


187 


tration  must  be  conducted  in  harmony  mth  the  recognition  of  the  founded  on 
irrepressible  coniiict  between  the  capitaUst  class  and  the  working  ^^^  '^  ^ 
class.  and  non- 
It  should  be  estabhshed  as  the  economic  organization  of  the  work-  Pp"*^'^'  1° 

°  character. 

ing  class,  \s-ithout  afiiliation  with  any  poUtical  party.  .  .  . 


80.   The  I.W.W.  declare  war  upon  capitalism  ^ 

In  answer  to  the  call  for  a  convention  to  organize  the  Industrial 
Workers  of  the  World,  a  number  of  anarchists,  socialists,  and  radical 
trade  unionists  assembled  in  Chicago  in  the  summer  of  1905.  This 
convention  adopted  a  constitution  and  formally  announced  its  inten- 
tions toward  capitalism.  These  principles  are  stated  in  the  preamble 
to  the  constitution  of  the  I.  \\'.  W.  in  the  following  language: 

The  working  class  and  the  emplojing  class  have  nothing  in  com- 
mon. There  can  be  no  peace  so  long  as  himger  and  want  are  foimd 
among  milhons  of  working  people  and  the  few,  who  make  up  the 
emplo\-ing  class,  have  all  the  good  things  of  hfe. 

Between  these  two  classes  a  struggle  must  go  on  until  the  workers 
of  the  world  organize  as  a  class,  take  possession  of  the  earth  and  the 
machinery-  of  production,   and  abolish   the  wage  system. 

We  find  that  the  centering  of  the  management  of  industries  into 
fewer  and  fewer  hands  makes  the  trade  imions  unable  to  cope  with 
the  ever  growing  power  of  the  emplo>dng  class.  The  trade  unions 
foster  a  state  of  affairs  which  allows  one  set  of  workers  to  be  pitted 
against  another  set  of  workers  in  the  same  industr\',  thereby  helping 
defeat  one  another  in  wage  wars.  Moreover,  the  trade  unions  aid 
the  employing  class  to  mislead  the  workers  into  the  behef  that  the 
working  class  have  interests  in  common  with  their  employers. 

These  conditions  can  be  changed  and  the  interest  of  the  working 
class  upheld  only  by  an  organization  formed  in  such  a  way  that  all 
its  members  in  any  one  industr}-,  or  in  all  industries,  if  necessary', 
cease  work  whenever  a  strike  or  lockout  is  on  in  any  department 
thereof,  thus  making  an  injurj'  to  one  an  injurj'  to  all. 

Instead  of  the  conservative  motto,  "A  fair  day's  wages  for  a  fair 


'  From  the  Industrial  Workers  of  the  World, 
Giicago,  1905. 


'Preamble  to  the  Constitution. 


The  I.W.W. 
adopt  a 
constitution. 


The  pream- 
ble declares 
for  class 


war. 


The  trade 
imion  an 
enemy  of 
the  working- 
man. 


The  general 

strike 

favored. 


1 88 


READINGS  IN  AMERICAN  DEMOCRACY 


The  watch- 
word of  the 
I.W.W. 

The  mission 
of  the 
working 
class. 


day's  work,"   we  must  inscribe  on  our  banner   the   revolutionary 
watchword,  "Abohtion  of  the  wage  system." 

It  is  the  historic  mission  of  the  working  class  to  do  away  with 
capitalism.  The  army  of  production  must  be  organized,  not  only  for 
the  every-day  struggle  with  capitalists,  but  also  to  carry  on  production 
when  capitalism  shall  have  been  overthrown.  By  organizing  indus- 
trially we  are  forming  the  structure  of  the  new  society  within  the 
shell  of  the  old.  .  .  . 


The  Com- 
munist 
Party  ad- 
vocated 
methods 
similar  to 
those  of  the 
I.W.W. 


One  of  the 
organizers 
of  the 
Communist 
Party 


predicts 
chaos  as  a 
result  of 
the  class 
struggle, 


81.   The  purpose  of  "mass  action"^ 

In  addition  to  the  I.  W.  W.,  there  have  existed  in  this  country, 
generally  for  a  short  period  only,  other  groups  of  industrial  revolu- 
tionists. In  1919,  for  example,  a  group  of  radicals  met  in  Chicago 
and  organized  the  Communist  Party.  This  group  had  much  in 
common  with  the  I.  W.  W.,  and  openly  approved  some  of  the  avowed 
methods  of  the  latter  organization.  One  of  the  organizers  of  the 
Communist  Party,  Dr.  Maximilian  Cohen,  was  examined  in  1919 
before  the  New  York  Joint  Legislative  Committee  Investigating 
Seditious  Activities.  Dr.  Cohen  declared  before  this  Committee 
that  "  the  agricultural  workers  would  organize  and  immediately  take 
over  the  factory  or  the  dairy  just  as  they  wotdd  take  over  an  in- 
dustry or  a  store  or  anything  else."  Being  further  questioned,  he 
replied  as  follows: 

Q.  Instead  of  delivering  it  and  selling  it,  they  would  deliver  it 
to  you  people?  A.  Yes,  exactly,  to  the  strike  committee,  as  they 
did  in  Seattle,  and  recently  in  Belfast.  The  strikers  had  enough 
organizing  ability  to  see  that  the  people  did  get  that  mLnimimi  amount 
necessary. 

Q.  You  mean  to  assume  the  government  to  the  exclusion  of  the 
elected  representatives?  A.  We  are  not  interested  at  aU  in  what 
Congress  would  do.  .  .  .  If  capitalism  is,  as  we  believe  it,  on  the 
verge  of  a  breakdown  in  all  countries,  which  brings  with  it  a  greater 
and  greater  discontent  and  a  growing  class  consciousness  among  the 
unskilled  workers,  who  are  in  the  vast  majority,  and  they  will  organize 


1  From  the  New  York  Joint  Legislative  Committee  Investigating  Seditious 
Activities,  Report.    Albany,  1920.    Vol.  i,  pp.  876-8S1. 


MILITANT  SOCIALISM:    THE  I.  W.   W.  189 

and  listen  to  our  propaganda,  the  time  must  necessarily  come  when 
a  state  of  chaos  is  at  hand.  The  workers  and  Soviets  on  one  hand, 
and  the  constituent  assembhes  on  the  other  hand,  both  wrestling 
for  power.  That  will  be  the  situation.  Whether  or  not  it  will  be 
orderly  depends  on  you  people,  because  we  want  to  assume  these 
organizations. 

Q.   But  if  there  is  any  resistance?   .-1.   Well,  you  will  show  the  re-   and  defends 
sistance,  we  will  not;  you  will  fight  to  retain  power  and  the  workers   "™^^^„ 
wfTl  fight  to  wrest  it  away  from  you.  .  .  .  What  you  are  trying  to  get 
from  me  is  an  admission  that  force  will  be  necessary. 

Q.  No,  no;  if  you  have  any  other  way  to  do  it,  we  would  Uke  to 
know  your  idea.  .4.  The  question  of  force  does  not  rest  with  us. 
We  base  our  philosophy  on  life  itself  —  mass  action.  .  .  . 

Q.  What  do  you  mean  by  social  revolution?    A.   Social  revolution   He  defines 

means  the  overthrow  of  the  existing  system.  ^"^  ^^"c- 

^     T         1  -s  .      TTT  11    1  tions  the 

Q.   In  what  way?  ...  A.   Well,  let  us  see,  in  Russia  they  made   social  rev- 

a  raid  on  the  —  of  course,  they  aboKshed  all  the  constituent  assemblies   ol^tion. 
—  but  they  raided  the  ofl&ces  of  the  powers  that  be,  and   installed 
themselves,  and  immediately  organized  Red  Guards  to  protect  them- 
selves in  their  newly  found  power. 

Q.  And  you  would  approve  of  that  method?  A.  Unquestion- 
ably. .  .  . 

Q.   And  you  expect  to  take  all  the  institutions  and  all  of  the  property   The  present 

of  the  capitaHsts?    A.   Communize  it,  nationalize  it,  immediately.       owners  of 
/^     -117  11  •  property  to 

Q.   W  ell,  you  mean  take  it  away  from  the  present  owners  and  do   be  dis- 

what  you  please  with  it?     A.   Yes.  .  .  .  possessed. 

Q.  I  certainly  want  to  say  that  I  want  to  express  my  personal 
respect  for  your  frankness.  A .  I  must  be  frank  or  be  untrue  to  my 
principles.  They  are  universal  so  far  as  those  who  hold  those  be- 
liefs are  concerned.  If  I  were  to  get  on  the  stand  and  say  that 
I  don't  believe  in  a  class  war  and  in  overthrowing  the  capitalist 
government,  I  would  be  lying.  .  .  . 

Q.   Do  you  mean  by  that,  ["capitalist  system"   or  "capitalist    He  seeks 

government"],  our  present  form  of  government  as  now  constituted?   ^^^  ^^^'■' 
.  throw  of 

A.  Exactly.  the  govem- 

Q.  That  is  a  capitalistic  government?     A.   Yes.  "^"^P^  ^^  the 

Q.  And  when  you  say  that  you  want  to  aboHsh  the  capitalist   states. 


1 90 


READINGS  IN  MIERICAN  DEMOCIL\CY 


government,  you  mean  the  United  States  government?  A.  I  mean 
the  United  States  government  in  so  far  as  the  term  applies  to  this 
country.  If  we  are  carrying  on  revolutionarj''  propaganda  in  this 
country,  we  mean  the  overthrow  of  the  United  States  govern- 
ment. .  .  . 


Scope  of 
the  term 
sabotage. 


Vincent 
St.  John  on 
sabotage. 


How  the 
I.  W.  W. 

use     the 
strike  and 
sabotage. 


82.   The  nature  and  purpose  of  sabotage  ^ 

One  of  the  chief  weapons  of  the  I.  W.  W.  and  of  other  groups  of 
revolutionary  unionists,  is  that  of  sabotage.  This  term  is  variously 
employed,  being  used  to  describe  any  sort  of  deUberate  action  on 
the  part  of  workmen  which  results  in  the  destruction  of  the  em- 
ployer's property.  Owing  to  the  frankness  of  I.  W.  W.  leaders  and 
sympathizers,  it  is  possible  to  get  a  clear  idea  of  the  nature  and 
purpose  of  sabotage  as  understood  and  apphed  by  this  t},npe  of  social- 
ist. In  the  following  extract  from  the  Report  of  the  New  York  Joint 
Legislative  Committee  Investigating  Seditious  Activities,  sabotage 
is  explained  and  illustrated: 

The  frankest  statement  of  the  tactics  and  methods  employed  by 
the  I.  W.  W.  is  to  be  found  in  the  pamphlet  of  Vincent  St.  John, 
from  which  .  .  .  we  quote  the  following: 

"As  a  revolutionary  organization  the  Industrial  Workers  of  the 
World  aims  to  use  any  and  all  tactics  that  will  get  the  results  sought 
with  the  least  expenditure  of  time  and  energy.  The  tactics  used 
are  determined  solely  by  the  power  of  the  organization  to  make  good 
in  their  use.    The  question  of  '  right '  or  '  wrong '  does  not  concern  us. 

"No  terms  made  with  an  employer  are  final.    AU  peace  so  long  as 

the  wage  system  lasts  is  but  an  armed  truce.     At  any  favorable 

opportunity  the  struggle  for  more  control  of  industry^  is  renewed.  .  .  . 

No  part  of  the  organization  is  allowed  to  enter  into  time  contracts 

with  the  employers.     WTiere  strikes  are  used,  it  aims  to  paralyze 

all  branches  of  the  industry  involved,  when  employers  can  least 

afTord  a  cessation  of  work  — ■  during  the  busy  season  and  when  there 

are  rush  orders  to  be  filled.  .  .  .  Failing  to  force  concessions  from 

the  employers  by  the  strike,  work  is  resumed  and  'sabotage'  is  used 

to  force  employers  to  concede  the  demands  of  the  workers.  ..." 

1  From  the  New  York  Joint  Legislative  Committee  Investigating  Seditious 
Activities,  Report.    Albany,  1020.    Vol.  i,  pp.  887-889. 


MILITANT  SOCIALISM:    THE  I.   W.   W.  191 

It  will  be  noted  that  the  employment  of  sabotage  is  here  frankly- 
advocated.  This  term,  (which  though  comparatively  new,  has  be- 
come famihar),  is  somewhat  hard  to  define.  In  attempting  to  define 
the  word  at  the  convention  of  the  Socialist  Party  of  America  held 
in  IndianapoUs  in  May,  191 2,  Delegate  Slaydon  said  as  follows: 

"Sabotage  as  it  prevails  to-day  means  interfering  with  the  ma-  Sabotage 
chinery  of  production  without  going  on  strike.  It  means  to  strike  described, 
but  stay  on  the  payroll.  It  means  that  instead  of  leaving  the  machine 
the  workers  wiU  stay  at  the  machine  and  turn  out  poor  work,  slow 
down  their  work  and  in  every  other  way  that  may  be  practicable 
interfere  with  the  profits  of  the  boss,  and  interfere  to  such  extent 
that  the  boss  will  have  to  come  around  and  ask,  'What  is  wrong? 
What  can  I  do  to  satisfy  you  people?'  " 

Sabotage  is  described  rather  than  defined  by  Robert  Hunter  in  his 
book  entitled  Violence  an  J  the  Labor  Movement  ...  as  follows: 

"If  a  strike  is  lost,  and  the  workmen  return  only  to  break  the  The  scope 
machines,  spoil  the  products,  and  generally  disorganize  a  factory,  sabotage, 
they  are  saboteurs.  The  idea  of  sabotage  is  that  any  dissatisfied 
workmen  shall  undertake  to  break  the  machine  in  order  to  render 
the  conduct  of  industry  unprofitable,  if  not  actually  impossible. 
It  may  range  all  the  way  from  machine  obstruction  or  destruction 
to  dynamiting,  train- wrecking,  and  arson."  .  .  . 

83.   Excerpts  from  the  I.  W.  W.  press  ^ 

Propaganda  by  means  of  the  printed  page  is  one  of  the  weapons  The  three- 

of  the  I.  W.  W.     Nothing  more  clearly  illustrates  the  character  of  [,f 'jj^^'^^'^^^ 

the  movement   than  the  I.  W.  W.   press,  the  threefold   object   of  i.  \v.  W. 

which  is  to  hearten  the  members  of  the  organization,  to  win  converts  P'^*^*^' 
to  I.  W.  W.  doctrines,  and  to  threaten  or  defy  those  whom  they  re- 
gard as  their  enemies.    The  following  excerpts  from  various  I.  W.  W. 
pubUcations  are  typical: 

From  the  New  Solidarity,   Chicago,  November   15,    1919.  Capitalism 

"The  oppressors  are  going  mad,  they  feel  the  crash  of  the  whole  demoralized, 
system  of  privilege  and  they  do  not  know  what  they  do.    They  are 

'  From  the  Nnv  Solidarity,  Chicago,  November,  191 9;    and  The  One  Big  Union 
Monthly,  Chicago,  June,  August  and  November,  1919. 


192 


READINGS  IN  AMERICAN  DEMOCRACY 


On  with 
the  revolu- 
tion! 


The  workers 
oppressed. 


Liberty  is 
practically 
dead  in  the 
United 
States. 


willing  to  do  any  terrible  thing  before  they  pass  into  history.  It 
is  the  duty  of  the  class  conscious  workingmen  of  all  nationalities 
to  shorten  the  hours  of  the  White  Terror  of  the  powers  that  be  and 
bring  nearer  the  emancipation  of  the  toilers.  Now  is  the  time,  all 
you  Anarchists,  Socialists,  Communists,  non-ists,  all  for  the  big 
drive!     Let  us  hit  the  plutocrats  and  get  rid  of  them!" 

From  the  New  Solidarity,  Chicago,  November  i,  1919. 

"To  the  wage  slaves  of  Germany,  Proletarians  of  Germany,  Fellow 
Workers:    \VE  are  with  you  in  class  conscious  solidarity  and 

REVOLUTIONARY  FIGHTING  SPIR  t!  \VITH  YOU  FOR  THE  LIBERATION 
OF  THE  WORKING  CLASS !      WITH  YOU  FOR  THE  WORLD  REVOLUTION!" 

From  The  One  Big   Union  Monthly,   Chicago,  November,   1919. 

"On  the  industrial  field,  the  workers  continue  to  be  without  a 
vote,  just  as  they  used  to  be  on  the  poUtical  field.  .  .  .  We  haven't 
got  a  single  word  to  say  in  the  deciding  of  the  quantity  and  quality 
of  what  shall  be  produced,  nor  a  single  word  to  say  as  to  the  distri- 
bution of  the  products  of  labor.  We  have  not  a  word  to  say  in 
regard  to  wages,  hours,  or  working  conditions.  Just  as  before  the 
time  of  the  poHtical  franchise  we  had  no  way  of  carrying  out  our 
will  except  political  revolution  or  insurrection,  so  we  have  now,  on 
the  industrial  field,  no  way  of  making  our  will  felt  except  through 
industrial  insurrections  or  so-called  strikes,  for  the  strike  is  funda- 
mentally nothing  else  than  an  industrial  insurrection." 

From   The  One  Big   Union  Monthly,   Chicago,  November,   1919. 

"Liberty  is  practically  dead  in  this  country.  Courageous  and 
daring  truth  speakers  are  either  made  harmless  or  are  silenced,  and 
the  field  of  publicity  is  reserved  solely  for  the  criminal  philosophy 
of  profiteerdom.  Rapacious  'business  men'  and  gamblers  are  spread- 
ing themselves  insolently  with  their  platitudes  and  their  criminal 
principles  in  the  columns  of  the  newspapers,  and  what  they  say  is 
made  to  weigh  as  much  as  the  word  of  God.  These  terrorists  have 
bit  the  head  off  shame  and  turned  morals  upside  down.  Right 
is  what  agrees  with  the  interests  of  these  robbers;  wrong  is  what 
is  contrary  thereto.  The  so-called  '  intelligentzia,'  consisting  of 
professors,  lawyers,  journalists,  physicians,  priests,  and  others  with 
a  university  education,  have  long  ago  been  made  so  dependent  that 
they  no  longer  dare  to  speak  the  truth,  and  if  they  should  do  so,  there 


MILITANT  SOCIALISM:    THE  I.   W.   W.  1 93 

is  no  publicity  given  to  it,  for  swindledom  controls  the  whole  big 
press." 

From  The  One  Big  Union  Monthly,  Chicago,  August,  1919. 

"Of  course,  the  farmer  .  .  .  considers  it  preposterous  that  any-   The  farmer 

body  should  propose  to  disturb  him  in  the  ownership  of  the  land   i^"st  give 

-'  ^     ^  up  his  land, 

that  he  has  himself  conquered  from  the  wilderness,  bought  for  cold 

cash,  or  inherited  from  his  family.  But  .  .  .  the  day  will  come 
when  the  farmer  himself  will  prepare  to  surrender  his  title  to  the  land 
to  the  people  as  a  whole,  represented  by  the  agricultural  organiza- 
tion, and  place  himself  as  a  worker  on  the  One  Big  United  States 
farm,  side  by  side  with  the  men  who  now  are  organized  in  the  Agri- 
cultural Workers  Industrial  Un  on  of  the  I.  W.  W." 

From  The  One  Big  Union  Monthly,  Chicago,  June,  1919. 

"We  are  facing  a  revolution.     The  masters  say  that  it  will  not    Revolution 
come  and  that  it  must  not  come.  ...  ^^  '^^"^• 

"Hoping  for  it  or  hoping  against  it,  we  are  facing  a  revolution.  .  .  . 

"Up  against  the  dykes  comes  the  strong  tidal  wave  of  proletarian 
will  to  revolt. 

"In  spite  of  denials,  of  wails  and  curses,  a  creeping  terror  grips   The 

the  masters'  vitals.  employers 

terrified. 
"They  are  preparing  in  the  shadow  of  deadly  peril,  in  the  mad 

panic  of  those  who  do  not  understand.  .  .  .  Their  own  terror  bears 

testimony  of  the  reality  of  the  cataclysm  in  preparation.  ... 

"Workers!    Upon  your  shoulders  rests  the  destiny  of  the  future.    Mankind 

Mankind  looks  for  an  iron  pillar  to  lean  against  in  the  crucial  times   !°°^*  ^^  ^^ 

at  hand.    Get  together  in  the  One  Big  Union  btiilt  on  the  rock  bottom   Uberation. 

of  modern  production.     It  is  up  to  you  to  subdue  the  mad  dogs 

of  capitalism  and  open  the  gates  of  freedom." 

84.   The  call  for  a  socialist  revolution  ^ 

The  industrial   revolutionists  have   found   few   adherents  among   The  secretly 

the  workingmen  of  the  United  States,  and  have  had  little  effect   ^'^^"''.V,*^*^ 

_  _  handbill  as 

upon  pubhc  opinion  in  this  country.     This  general  failure  cannot   a  method  of 

be  attributed  to  the  lack  of  an  aggressive  spirit  in  their  organiza-    Propaganda. 

tions,  for  certainly  these  groups  have  been  most  active  in  urging 

*  From  the  American  Anarchist  Federated  Commune  Soviets,  Anarchist  Soviet 
Bulletin,  New  York,  July,  1919. 


194 


READINGS  IN  AMERICAN  DEMOCRACY 


Why  the 
Allies  con- 
tinued to 
blockade 
Russia. 


How  to 
stop  this 
hideous 
crime. 


We  must 
act  quickly! 


On  with  the 
revolution! 


sabotage,  the  general  strike,  and  revolution.  A  favorite  method  of 
propaganda  has  been  the  use  of  secretly  distributed  handbills.  Typi- 
cal of  these  handbills  is  the  "Anarchist  Soviet  Bulletin,"  issued  by 
a  group  of  the  I.  W.  W.  type,  which,  immediately  after  the  World 
War,  adopted  the  name  of  "The  American  Anarchist  Federated 
Commune  Soviets."  One  of  the  articles  in  the  July,  1919,  bulletin 
ran  as  follows: 

.  .  .  Do  you  WORKERS  know  the  reason  why  the  Allies  are  [going 
to  continue  to  blockade  Russia?]  because  the  success  of  the 
workers'  commune  SOVIETS  [the  Russian  bolshevists  during  the 
period  of  the  World  War]  means  the  beginning  of  the  down- 
fall OF  capitalism  all  over  the  world!  .  .  . 

So,  if  capitalism  through  the  allied  governments  has  taken  upon 
itself  to  crush  the  workers'  Soviets  of  Russia  and  bring  back  the 
rule  of  czardom,  then  it  only  shows  that  it  is  their  final  stand,  in  order 
to  maintain  their  dying  system,  for  they  have  taken  up  a  war  not 
only  against  the  workers  of  Russia  but  against  the  workers 
of  the  whole  world!  .  .  . 

What  are  you  going  to  do  about  it?  What  is  your  answer  to  this 
challenge  of  capitalism?  .  .  . 

What  is  needed,  is  not  appeals  to  capitalism  and  its  political  tools 
to  save  that  which  it  is  to  their  interest  to  destroy.  The  only  way 
to  stop  this  hideous,  heart-breaking,  murderous  crime  against  our 
fellow  workers  in  Russia  is  for  us  to  take  matters  into  our  own 

HANDS  AND  ACT   QUICKLY !    .    .    . 

We  must  act  quickly!  In  our  shops,  mines,  mills,  and  factories, 
in  our  unions,  forums  and  societies,  wherever  the  workers  gather, 
this  matter  must  be  taken  up.  Let  a  ringing  message  echo  around 
the  world  that  the  workers  of  America  have  called  a  General  Strike, 
not  only  to  block  the  attempt  to  revive  the  old  czardom,  but  also 
to  organize  workers'  communist  Soviets  in  every  center  in  America 
and  begin  to  take  over  every  industry  in  the  country. 

Let  our  message  to  the  Workers'  Soviets  of  Russia  be  "keep  up 

your  COURAGEOUS  BATTLE  FOR  FREEDOM!  THE  WORKING  CLASS 
OF  THE  ENTIRE  WORLD  WILL  SOON  BE  FIGHTING  ON  THE  BARRICADES 
OF  THE  SOCIAL  REVOLUTION  AGAINST  CAPITALISM,  ITS  AGENTS  AND 
UPHOLDERS,    THE    GOVERNMENT,    THE    CHURCH    AND    THE    PRESS. 


MILITANT  SOCIALISM:    THE   I.   W.   W.  1 95 

WE  THE  WORKERS  OF  THE  WORLD,  HAVE  COMMITTED  A  GREAT  CRIME 
AGAINST  YOU  RUSSIAN  WORKERS,  BY  REMAINING  SILENT  AND  SUB- 
mSSIVE,  BUT  NOW  WE  WILL  SUBMIT  AND  KEEP  SILENT  NO  LONGER! 
WE  WILL  BEGIN  TO  ACT  NOT  ONLY  TO  SAFEGUARD  YOUR  FREEDOM 
BUT   ALSO    TO    FREE    OURSELVES! 

Workers  of  America!     Unite  into  Workers'  Soviets  everywhere,    Get  ready 
get  ready  to  respond  to  the  call  of  the  general  strike  throughout  ^°^  *^^ 
THE  country,  for  that  great  day  will  mark  the  beginning  of  the    strike. 
social  revolution.     The  Workers'  Soviets  of  Russia  shall  never  be 
destroyed! 

Their  destruction  means  our  continuation  in  slavery! 

Their  victory  means  our  liberation  and  the  Uberation  of  the  workers 
of  the  World! 

Therefore  we  call  upon  the  workers  of  all  countries  and   Act  at 

upon   the  workers   of  AMERICA  TO  ACt!      AND  ACT  AT   ONCE!!  °°^^" 


Questions  on  the  foregoing  Readings 

1.  When  and  why  was  the  I.  W.  W.  organization  formed? 

2.  What  attitude  was  expressed  toward  trade  unionism  in  the  mani- 

festo caUing  a  convention  to  organize  the  I.  W.  W.? 

3.  What  does  the  preamble  to  the  constitution  of  the  I.  W.  W.  say 

about  class  struggle? 

4.  What  revolutionary  watchword  was  to  be  inscribed  on  the  banner 

of  the  I.  W.  W.? 

5.  Who  was  Dr.  Maximilian  Cohen? 

6.  Outline  the  views  of  this  man  with  regard  to  "  mass  action  "  and 

the  social  revolution. 

7.  What  opinion  did  Dr.  Cohen  express  with  regard  to  the  government 

of  the  United  States? 

8.  Define  sabotage. 

9.  Outline  the  statement  of  Vincent  St.  John  with  respect  to  sabotage. 

10.  How  does  Robert  Hunter  describe  sabotage? 

11.  What  is  the  threefold  object  of  the  I.  W.  W.  press? 

12.  What  message  did  the  New  Solidarity  convey  to  the  working  classes 

of  Germany  in  1919? 

13.  What   opinion    was   expressed   in    the    November,    1919,    issue   of 

The  One  Big    Union  Monthly,  as  to  liberty  in  this  country? 

14.  What  prophecy  was  contained  in  the  August,  19 19.  issue  of   The 

One  Big    Union  Monthly  with  respect  to  the  farmer  and  land 
ownership? 


196  READINGS   IN  AMERICAN  DEMOCRACY 

15.  What  is  a  favorite  method  of  advocating  sabotage,  the  general 

strike,  and  revolution? 

16.  Outline   the   contents   of    the    Anarchist   Soviet   Bulletin  for  July, 

1919,  with  respect  to  the  general  strike  and  the  social  revolution. 


CHAPTER  XV 
MILITANT   SOCIALISM:     THE   BOLSHEVISTS 

85.   Socialism  is  established  in  Russia  ^ 

Ever  since  the  days  of  Karl  Marx  socialists  the  world  over  had  At  last  the 
been  agitating  for  the  "social  revolution."  This  revolution  came  ^^fjoj^  "^^^^ 
in  Russia  in  191 7.  On  November  7  of  that  year  the  reins  of  govern- 
ment were  seized  by  a  group  of  sociaUsts  calling  themselves  "com- 
munists," but  better  known  as  "bolshevists."  On  July  10,  1918, 
the  bolshevists  adopted  a  constitution,  which  began  with  the 
following  declaration  of  rights: 

A.  Article  One.  Declaration  of  Rights  of  the 
Laboring  and  Exploited  People 

Chapter  One 

1.  Russia  is  declared  to  be  a  RepubHc  of  the  Soviets  of  Workers',    Russia  de- 
Soldiers',  and  Peasants'  Deputies.     All  the  central  and  local  power   ^"^^igj. 
belongs  to  these  Soviets.  Republic. 

2.  The  Russian  Soviet  Republic  is  organized  on  the  basis  of  a 
free  union  of  free  nations,  as  a  federation  of  Soviet  national  republics. 

Chapter  Two 

3.  Bearing  in  mind  as  its  fundamental  problem  the  aboHtion  of   The  Con- 
the  exploitation  of  men  by  men,  the  entire  abolition  of  the  division    ^'^'^f.^  "   ^^'^ 
of  the  people  into  classes,  the  suppression  of  exploiters,  the  estab-    Republic 
hshment  of  a  socialist  society,  and  the  victory  of  socialism  in  all 

lands,  the  Third  All-Russian  Congress  of  Soviets  of  Workers',  Soldiers', 
and  Peasants'  Deputies  further  resolves: 

(c)  For  the  purpose  of  attaining  the  socialization  of  land,  all  pri- 
vate property  in  land  is  abohshed,  and  the  entire  land  is  declared 

1  From    the    Russian     Socialist    Federated     Soviet     Republic,     Constitution, 
Article  i,  Chapters  i  and  11. 

197 


iqS 


READINGS   IN   AMERICAN  DEMOCR.\CY 


declares 
abolished 
the  private 
ownership 
of  land. 

Other 
industrial 
resources 
are  also 
declared  to 
be  national 
property. 


Declarations 
with  regard 
to  loans 


and  banks. 


A  Socialist 
Red  Army 
and  its 
purpose. 


to  be  national  property  and  is  to  be  apportioned  among  agricultur- 
ists  without  any  compensation  to  the  former  owners,  in  the  measure 
of  each  one's  abUity  to  till  it. 

(b)  AH  forests,  treasures  of  the  earth,  and  waters  of  general  pubUc 
utility,  aU  equipment  whether  animate  or  inanimate,  model  farms 
and  agricultural  enterprises,  are  declared  to  be  national  property. 

(c)  As  a  first  step  toward  complete  transfer  of  ownership  to  the 
Soviet  Republic  of  aU  factories,  mUls,  mines,  railways,  and  other 
means  of  production  and  transportation,  the  Soviet  law  for  the 
control  by  workmen  and  the  estabhshment  of  the  Supreme  Soviet 
of  National  Economy  is  hereby  confirmed,  so  as  to  insure  the  power 
of  the  workers  over  the  exploiters. 

(d)  With  reference  to  international  banking  and  finance,  the 
Third  Congress  of  Soviets  is  discussing  the  Soviet  decree  regarding 
the  annulment  of  loans  made  by  the  Government  of  the  Czar,  by 
landowners  and  the  bourgeoisie,  and  it  trusts  that  the  Soviet  Gov- 
errmient  will  firmly  follow  this  course  until  the  final  victory  of  the 
international  workers'  revolt  against  the  oppression  of  capital. 

(e)  The  transfer  of  aU  banks  to  the  ownership  of  the  Workers' 
and  Peasants'  Government,  as  one  of  the  conditions  of  the  hbera- 
tion  of  the  toiling  masses  from  the  yoke  of  capital,  is  confirmed. 

(/)  Universal  obligation  to  work  is  introduced  for  the  purpose  of 
eUminating  the  parasitic  strata  of  society  and  organizing  the  economic 
life  of  the  country. 

(g)  For  the  purpose  of  securing  the  working  class  in  the  possession 
of  complete  power,  and  in  order  to  eliminate  all  possibility  of  re- 
storing the  power  of  the  exploiters,  it  is  decreed  that  all  workers  be 
armed,  and  that  a  SociaHst  Red  Army  be  organized  and  the  propertied 
class  disarmed. 


The  bol- 
shevist 
constitution 
limited  the 
suffrage 


86.   The  suffrage  under  bolshevism  ^ 

One  accepted  index  to  the  poUtical  character  of  a  nation  is  the 

extent  to  which  the  adult  population  of  that  nation  enjoy  the  right 

to  vote.     A  century  and  a  half  ago,  it  was  generally  true  that  the 

masses  of  the  people  had  relatively  little  control  over  the  conduct 

1  From  the  Russian  Socialist  Federated  Soviet  Republic,  Constitution,  Article  rv. 
Chapter  xiii. 


MILITANT  SOCIALISM:    THE  BOLSHEMSTS  199 

of  their  government;  more  recently,  however,  the  steady  spread  of 
democracy  has  markedly  extended  the  suffrage.  The  plea  of  some 
sociaUsts  has  long  been  for  an  even  greater  control  of  government  by 
the  masses,  yet  the  Russian  sociaUsts  definitely  and  unqualifiedly 
excluded  important  classes  of  the  population  from  the  suffrage. 
The  following  excerpts  from  the  bolshevist  constitution  illustrate 
the  attitude  of  the  Russian  socialists  toward  the  suffrage: 

Chapter  Thirteen 

64.  The  right  to  vote  and  to  be  elected  to  the  Soviets  is  enjoyed  to  certain 

.  .      ,.    •  •  enumerated 

by  the  following  citizens  of  both  sexes,  irrespective  ot  rehgion,  nation-   groups, 

ahty,  domicile,  etc.,  of  the  Russian  SociaUst  Federated  Soviet  Re- 
pubUc,  who  shall  have  completed  their  eighteenth  year  by  the  day 
of  election: 

{a)  All  who  have  acquired  the  means  of  livelihood  through  labor 
that  is  productive  and  useful  to  society,  and  also  persons  engaged 
in  housekeeping  which  enables  the  former  to  do  productive  work, 
i.e.,  laborers  and  employees  of  all  classes  who  are  employed  in  indus- 
try, trade,  agriculture,  etc.,  and  peasants  and  Cossack  agricultural 
laborers  who  employ  no  help  for  the  purpose  of  making  profits. 

{h)  Soldiers  of  the  army  and  navy  of  the  Soviets. 

(c)  Citizens  of  the  two  preceding  categories  who  have  in  any 
degree  lost  their  capacity  to  work. 

65.  The  following  persons  enjoy  neither  the  right  to  vote  nor  the   while  a 
right  to  be  voted  for,  even  though  they  belong  to  one  of  the  categories   "^  ^^^° 
enumerated  above,  namely:  classes  were 

(o)  Persons  who  employ  hired  labor  in  order  to  obtain  from  it   ^j^^^/^'^/he 
an  increase  in  profit.  ballot. 

{h)  Persons  who  have  an  income  without  doing  any  work,  such 
as  interest  from  capital,  receipts  from  property,  etc. 

(c)  Private  merchants,    trade   and   commercial   brokers. 

{d)  Monks  and  clcrg>'  of  all  denominations. 

(e)  Employees  and  agents  of  the  former  pohce,  the  gendarme 
corps,  and  the  Okhrana  (Czar's  secret  service),  also  members  of  the 
former  reigning  dynasty. 

(/)  Persons  who  have  in  legal  form  been  declared  demented  or 
mentally  deficient,  and  also  persons  under  guardianship. 


200 


READINGS  IN  AMERICAN   DEMOCRACY 


(g)  Persons  who  have  been  deprived,  by  a  Soviet,  of  their  rights 
of  citizenship  because  of  selfish  or  dishonorable  offenses,  for  the  period 
fixed  by  the  sentence. 


Lenin  and 
Trotzky 
established 
a  dictator- 
ship of  the 
proletariat. 


In  defend- 
ing this 
dictatorship, 
Lenin  de- 
clared 

it  to  be  a 
normal  and 
familiar 
stage  in 
historical 
develop- 
ment. 


87.   Lenin  defends  the  dictatorship  of  the  proletariat  ^ 

Shortly  after  the  promulgation  of  the  bolshevist  constitution, 
Lenin  and  Trotzky,  the  two  bolshevist  leaders,  established  a  dictator- 
ship of  the  proletariat.  This  amounted  to  a  despotic  control  of  the 
masses  of  the  people  by  a  small  group  of  bolshevists,  maintained 
in  power  by  armed  force.  Under  this  dictatorship,  socialism  was 
apphed  on  a  nation-wide  scale.  The  system  of  private  property 
was  aboUshed,  the  capitahst  and  employing  classes  were  deprived 
of  their  holdings,  and  the  industrial  equipment  of  the  nation  was 
turned  over  to  the  bolshevist  workmen.  That  the  socialist  experi- 
ment might  be  free  from  hindrance,  the  bolshevists  suppressed  free- 
dom of  assemblage,  freedom  of  the  press,  and  other  privileges  which 
might  operate  to  bring  the  great  experiment  to  an  unsuccessful  con- 
clusion. Early  in  March,  1919,  Lenin  defended  these  measures  in 
the  following  language: 

.  .  .  History  teaches  that  no  oppressed  class  has  ever  come  into 
power  and  cannot  come  into  power,  without  passing  through  a  period 
of  dictatorship,  that  is,  the  conquest  of  power"  and  the  forcible  sup- 
pression of  the  most  desperate  and  mad  resistance,  who  does  not 
hesitate  to  resort  to  any  crimes,  such  as  always  has  been  shown  by  the 
exploiters.  The  bourgeoisie  .  .  .  has  won  power  in  the  progressive 
countries  at  the  price  of  a  series  of  uprisings,  civil  wars,  forcible  sup- 
pression of  kings,  feudal  lords,  and  slave  owners,  and  of  their  attempts 
at  restoration.  The  socialists  of  all  countries,  in  their  books  and 
pamphlets,  in  the  resolutions  of  their  congresses,  in  their  propaganda 
speeches,  have  explained  to  the  people  thousands  and  millions  of 
times  the  class  character  of  these  bourgeois  revolutions,  and  of  this 
bourgeois  dictatorship. 

Therefore  the  present  defense  of  bourgeois  democracy  in  the  form 
of  speeches  about  "democracy  in  general,"  and  the  present  wails 
and  shouts  against  the  dictatorship  of  the  proletariat  in  the  form 

1  From  Nickolai  Lenin,  as  reported  in  the  Petrograd  Pravda,  March  8,  igig- 


MILITANT  SOCIALISM:    THE   BOLSHEVISTS  20I 

of  wails  about  "dictatorship  in  general,"  are  a  direct  mockery  of   He  chides 
socialism,  and  represent  in  fact  going  over  to  the  bourgeoisie  and   gQ^j^'JJg'^^^'^ 
denying  the  right  of  the  proletariat  to  its  own  proletarian  revolution,    groups  for 
and  a  defense  of  bourgeois  reformism,  precisely  at  the  historic  moment   R"'"*^^"?  °"* 
when  bourgeois  reformism  is  collapsing  the  world  over,  and  when   ocratic 
the  war  has  created  a  revolutionary  situation.  .  .  .  thrdkta-°^ 

" Freedom  of  meeting"  may  be  taken  as  an  example  of  the  demands  torship. 
for  "pure  democracy."  Any  conscious  workman  who  has  not  broken 
with  his  own  class  will  understand  immediately  that  it  would  be 
stupid  to  permit  freedom  of  meeting  to  exploiters  at  this  period,  and 
under  the  present  circumstances,  when  the  exploiters  are  resisting 
their  overthrow,  and  are  fighting  for  their  privileges.  .  .  . 

"Freedom  of  press"  is  also  one  of  the  main  arguments  of  "pure  Lenin  on 
democracy,"  but  again  the  workmen  know  that  the  socialists  of  all  j^^  ^^^^ 
countries  have  asserted  milHons  of  times  that  this  freedom  is  a  fraud 
so  long  as  the  best  printing  machinery  and  the  largest  supplies  of 
paper  have  been  seized  by  the  capitahsts,  and  so  long  as  the  power 
of  capital  over  the  press  continues.  ...  In  order  to  secure  actual 
equaUty  and  actual  democracy  for  the  toilers,  for  workmen  and 
peasants,  one  must  first  take  from  capitahsts  the  possibility  of  hiring 
writers,  of  buying  up  publishing  houses,  of  buying  up  newspapers, 
and  to  this  end  must  overthrow  the  yoke  of  capital,  overthrow  the 
exploiters,  and  put  down  all  resistance  on  their  part.  .  .  . 

The  essence  of  the  Soviet  authority  consists  in  this,  that  the  per-   The  essence 
manent  and  sole  basis  of  all  State  authority,  of  the  entire  apparatus   authority, 
of  government,  is  the  mass  organization  precisely  of  those  classes 
which  were  oppressed  by  capitaUsm,  that  is,  of  the  workmen  and  of 
the  half-proletarians  (peasants  who  did  not  exploit  the  labor  of  another 
and  constantly  had  to  sell  at  least  a  portion  of  their  labor  strength). 
Precisely  those  masses  (which  even  in  the  most  democratic  bourgeois 
repubhcs  had  equal  rights  before  the  law,  but  in  fact  were  deprived 
of  participation  in  the  political  hfe  of  the  country,  and  [^were  also 
deprived  of  democratic  rights  and  hberties]]  by  thousands  of  tricks 
and  traps  .  .  .)  are  now  brought  into  constant  and  actual  .  .  ,  par-  • 
ticipation  in  the  democratic  administration  of  the  State.  .  .  . 


202 


READINGS  IN  AMERICAN   DEMOCRACY 


The  bol- 
shevists  set 
out  to  fo- 
ment world 
revolution. 


The  work 
of  bolshe- 
vist  propa- 
gandists in 
the  domain 
of  inter- 
national re- 
lations. 


in  the  field 
of  internal 
pohtics, 


!n  the 

economic 

sphere, 


88.   Aims  of  bolshevist  propagandists  abroad  ^ 

The  bolshevists  were  no  sooner  in  power  in  Rus.sia  than  they  began 
to  urge  to  revolution  the  various  radical  groups  in  other  countries. 
In  this  attempt  to  foment  international  revolution,  the  bolshevist 
authorities  issued  numerous  statements  and  proclamations.  In 
the  summer  of  19 19,  for  example,  the  bolshevist  government  issued 
the  following  instructions  to  its  agents  in  foreign  countries: 

The  work  of  bolshevist  organization  in  foreign  countries  is  regulated 
as  follows: 

1.  In  the  domain  of   international  relations: 

(a)  Assist  all  chauvinistic  measures  and  foster  all  international 
discords. 

(b)  Stir  up  agitation  that  may  serve  to  bring  on  industrial  conflict. 

(c)  Try  to  assassinate  the  representatives  of  foreign  countries. 
(Thanks   to   these  methods,   interior   discords   and   coups   d'etat 

win  occur,  such  agitation  working  to  the  advantage  of    the  social 
democratic  party.) 

2.  In  the  domain  of  internal  politics: 

(o)  Compromise  by  every  possible  means  the  influential  men  of 
the  country;  attack  people  in  office;  stir  up  anti-government  agi- 
tation. 

(b)  Instigate  general  and  particular  strikes;  injure  machinery 
and  boilers  in  factories,  spread  propaganda  hterature. 

(Thanks  to  these  methods,  destruction  of  government  and  the 
seizure  of  power  will  be  facilitated.) 

3.  In  the  economic  sphere: 

(fl)  Induce  and  sustain  railroad  strikes;  destroy  bridges  and 
tracks;    do  everything  possible   to   disorganize   transport. 

(b)  Interfere  with  and  prevent  if  possible  the  transport  of  food 
supplies  into  the  cities;  provoke  financial  troubles;  flood  the  markets 
with  counterfeit  bank  notes,  appoint  everywhere  special  committees 
for  this  work. 


1  From  the  Russian  Socialist  Federated  Soviet  Repubhc,  "General  Instructions 
to  Foreign  Agents,"  issued  in  1919. 


MILITANT  SOCI.\LISM:    THE   BOLSHEVISTS  203 

(In  this  way  economic  disorganization  will  bring  its  inevitable 
catastrophe  and  the  resulting  revolution  against  the  government 
will  have  the  sympathy  of  the  masses.) 

4.   In  the  military  sphere:  and  in  the 

(a)  Carry  on   intensive  propaganda  among   the   troops.     Cause      . .  °^ 
misunderstandings  between  officers  and  soldiers.     Unite  the  soldiers  activity, 
to  assassination  of  the  higher  officers. 

(b)  Blow  up  arsenals,  bridges,  tracks,  powder  magazines.  Prevent 
the  deUvery  of  supplies  of  raw  materials  to  factories  and  mills. 

(Thus  the  complete  destruction  of  the  army  will  be  accomplished 
and  the  soldiers  will  adopt  the  program  of  the  social  democratic 
workers.) 


89.   The  suicide  letter  of  a  bolshevist  ^ 

From  the  moment  that  they  came  into  power  (November  7,  191 7),   The  sus- 

the  bolshevists  adopted  measures  which  were  admittedly  violent   P''^!^"  ^^^.' 

•^  sociahsm  in 

and    undemocratic.      The    bolshevist    leaders    believed    that    these   Russia  was 

measures  were  necessary  in  order  to  establish  socialism  in  Russia.    ^  ^^.ilure 

They  believed,  too,  that  the  benefits  of  socialism  would  appear  so 

quickly  and  in  such  abundance  that  the  rigors  of  the  "transition 

period"  would  appear  trivial  and  uninfluential  in  comparison.     But 

despite  the  efforts  of  the  authorities,  applied  socialism  worked  so 

badly  that  even  some  of  its  most  ardent  supporters  began  to  suspect 

that  it  was  a  mistaken  scheme.    On  April  24,  1919,  N.  Lopoushkin, 

a    prominent   bolshevist  official  in  Kirsnov,  Russia,  wrote  a  letter 

to  the  Central  Soviet  of  Workmen's  Deputies  at  Moscow,  expressing 

his  conviction  that  socialism  was  a  failure,    .\fter  v.'riting  this  letter, 

he  committed  suicide.     The  letter  follows: 

My  colleagues  of  the-  Kirsnov  Soviet  are  writing  to  tell  you  that    expressed 

I  am  no  longer  fit   to  hold  the  position  of  President  of  the  Soviet,    ^^  ^.  ^°^' 

^  '    shcvist  oflB- 

that  I  am  a  counter-revolutionar>%  that  I  have  lost  my  nerve,  and   cial. 
am  a  traitor  to  our  cause.     Perhaps  they  are  right  —  I  only  wish  I 
knew.  .  .  . 

Speaking  frankly,  we  are,  in  my  opinion,  on  the  brink  of  a  terrible 

*  From  J.  Landfield,  "A  Commissar  Disillusioned."  The  Review,  October  4,  1919. 


204 


READINGS  IN  AMERICAN  DEMOCRACY 


The  reasons 
for  his 
despair: 


murder, 
license, 


famine, 
torture, 
terror, 
and  utter 
misery. 


The  author- 
ities de- 
moralized. 


Bolshevism 
hated  by 
the  people 
it  sought  to 
uplift. 


disaster,  which  will  leave  its  imprint,  not  only  upon  socialism,  but 
upon  our  nation  for  centuries,  a  disaster  which  wiU  give  our  descend- 
ants the  right  to  regard  us  bolshevists  at  the  best  as  crazy  fanatics, 
and  at  the  worst,  as  foul  imposters  and  ghastly  muddlers,  who  mur- 
dered and  tortured  a  nation  for  the  sake  of  an  unattainable  Utopian 
theory,  and  who  in  our  madness  sold  our  birthright  amongst  the 
peoples  for  less  than  the  proverbial  mess  of  pottage. 

All  around  me,  wherever  I  look,  I  see  unmistakable  signs  of  our 
approaching  doom,  and  yet  no  one  responds  to  my  appeals  for  help; 
my  voice  is  as  the  voice  of  one  crying  in  a  wilderness.  In  the  towns 
I  have  just  come  from,  chronic  hunger,  murder,  and  the  license  and 
Ubertinage  of  the  criminal  elements,  who  undoubtedly  hold  numerous 
executive  positions  under  our  Soviets,  have  reduced  the  population 
to  the  level  of  mere  brute  beasts,  who  drag  out  a  dull,  semi-conscious 
existence,  devoid  of  joy  in  to-day,  and  without  hope  for  the  morrow. 

Surely  this  should  not  be  the  result  of  the  earthly  Paradise  which 
the  Soviets  were  to  introduce  into  our  hves.  Nor  did  I  find  the  posi- 
tion any  better  on  the  railways.  Everywhere  a  people  living  under 
the  dread  of  famine,  death,  torture,  and  terror,  everywhere  groaning 
and  utter  misery.  My  countrymen,  whom  I  love,  and  whom  I  had 
hoped  to  assist  to  render  happy  above  aU  nations,  look  at  me  either 
with  the  mute  uncomprehending  eyes  of  brutes  condemned  to  slaugh- 
ter, or  else  with  the  red  eyes  of  fury  and  vengeance.  .  .  . 

Speculation  is  rife  amongst  even  the  humble  inhabitants  in  the 
country  villages,  who  have  forced  a  lump  of  sugar  up  to  four  roubles, 
and  a  pound  of  salt  up  to  forty  roubles.  And  the  bolshevist  militia 
and  the  Soviets?  When  they  are  called  upon  to  deal  with  various  in- 
fringements of  the  bolshevist  decrees,  they  either  try  to  get  out  of 
taking  action  altogether,  or  else  they  pretend  that  there  is  insufficient 
evidence  to  commit  for  trial.  .  .  . 

No  member  of  the  Red  Guard  dare  risk  his  hfe  by  returning  to 
his  native  village,  where  his  father  would  be  the  first  to  kill  him. 
I  maintain  that  there  must  be  something  wrong  with  a  regime  which 
has  aroused  such  universal  hatred,  in  such  a  comparatively  short 
time;  and  amongst  whom?  Amongst  the  very  class  it  strove  to 
upUft,  to  free,  to  benefit,  and  to  render  happy.  .  .  . 

I  feel  tired  and  depressed.     I  know  that  the  Red  Terror  was  a 


MILITANT   SOCIALISM:    THE   BOLSHEVISTS  205 

mistake,  and  I  have  a  terrible  suspicion  that  our  cause  has  been  be- 
trayed at   the  moment  of  its  utmost   realization. 

Yours  in  fraternal  greeting, 

N.   LOPOUSHKIN 

90.   The  bolshevists  return  to  the  capitalistic  system  ^ 

The  conditions  to  which  Lopoushkin  had  called  attention  were   Lenin 
meanwhile  impressing  themselves  upon  the  minds  of  other  bolshevist   accepts  the 
officials.     At  length  even  Lenin  was  convinced  that  only  a  return   features  of 
to  capitaUstic  methods  would  save  the  country  from  ruin.    Accord-   c^P''^^"-^'^ 
ingly,  free  initiative  and  open  competition  in  certain  forms  of  trade   end  of 
were   allowed.      The   socialization   of   railroads,   mills   and   natural    ^^^^' 
resources  was  halted.     Land  was  again  cultivated  under  the  wage 
system.    By  the  end  of  1919  the  essential  features  of  capitaUsm  had 
been  accepted  by  Lenin  and  Trotzky,   the  bolshevists  continuing 
in  power  as  a  despotic  group  which  maintained  its  authority  by  armed 
force.    On  August  9,  1921,  Lenin  issued  an  important  decree,  in  which   In  ig2i 
he  paved  the  way  for  a  more  complete  abandonment  of  socialism.        ^^^'*^ 
The  following  are  excerpts  from  a  press  report  of  the  contents  of 
this  document: 

[The  decree  states  that  ths  bolshevist  government]  must  take 
most  energetic  measures  to  save  the  situation,  which  can  be  done 
only  by  carrying  out  in  a  firm  and  businessUke  way  the  following  in- 
structions and  directions  with  regard  to  the  new  economic  poHcy.  .  .  . 

Section  3  [of  the  decree]  sets  forth  four  reasons  which  led  to  the   his  reasons 
abandonment  of  the  old  policy.    They  were:   first,  the  vast  number   ["^f*^'^' 
of  enterprises  which  the  State  attempted  to  direct  without  having   abandoning 
adequate  supplies  of  food  and  material;    second,  the  confusion  of   socialism, 
powers  and  handling  of  suppUes  which  resulted  in  "too  much  red 
tape,  cross  instructions  and  irresponsibiHty " ;    third,  the  fact  that 
"with  such  methods  of  supply  and  with  the  methods  of  remuneration 
of  labor  those  engaged  in  production  were  not  and  could  not  be  inter- 
ested in  the  work  or  in  improvement  of  the  methods  of  production"; 
Fourth,  the  war  and  the  extreme  exhaustion  of  Russia. 

Section  4  runs  thus:    "In  order  to  prevent  the  further  deterioration    and  admits 

^  From  the  New  York  Times,  "Lenin  Gives  Reasons  Why  Policy  Failed."  Au- 
gust 14,  1921.     Section  i,  page  2. 


2o6 


READINGS  IN  AMERICAN  DEMOCRACY 


the  neces- 
sity of  a 
new  policy, 

in  which 
sociaUst 
activities 
are  to  be 
restricted, 


while  indus- 
try is  to  be 
directed 
more  and 
more  in 
accordance 
with  capi- 
talistic 
methods. 


A  further 
concession. 


Socialist 
principles 
with  respect 
to  trade 
and  the 
monetary 
system  are 
abandoned. 


of  national  life  it  is  necessary  to  remodel  this  life  on  the  following 
lines: 

"The  State  .  .  .  wiU  concentrate  under  its  direct  management 
certain  branches  of  production  and  a  certain  number  of  great  enter- 
prises of  national  importance  and  their  auxiliaries.  Such  estabHsh- 
ments  shall  be  conducted  on  strict  economic  principles.  The  Supreme 
Economic  Council  and  its  subordinates  shall  be  allowed  to  start 
and  conduct  enterprises  only  when  there  is  assurance  of  sufficient 
materials,  money,  etc.  .  .  ." 

Section  5  says  that  the  estabhshments  and  enterprises  not  included 
in  the  above  groups  shall  be  leased  to  cooperatives,  commercial 
companies  and  other  collective  bodies,  and  to  private  individuals, 
according  to  a  decree  governing  such  leases.  It  adds  that  "Soviet 
institutions  shall  take  most  energetic  steps  to  lease  such  establish- 
ments as  cannot  now  be  conducted  by  the  Soviet  economic  organiza- 
tions or  are  being  conducted  without  success,  in  order  to  reheve  the 
strain  of  the  State  machinery." 

Section  6  provides  for  shutting  down  the  establishments  which 
are  not  leased  or  which  the  State  decides  not  to  run,  and  the  dis- 
tribution of  the  better  workers  among  the  other  establishments. 

Section  7  emphasizes  the  importance  of  small  industries  as  auxiliary 
to  State  industry  and  peasant  agriculture,  and  adds:  "It  has  been 
thought  necessary  to  create  conditions  in  which  State  industrial 
workers  and  artisans  may  normally  develop  production  and  enjoy 
the  free  disposal  of  the  fruits  of  their  work."  .  .  . 

Section  10  ...  is  perhaps  the  most  revolutionary  of  all.  It  says: 
".  .  .To  resuscitate  the  national  economic  hfe,  it  is  necessary  to  de- 
velop free  commercial  intercourse  between  town  and  country,  and 
in  particular  to  revise  the  monetary  system.  Therefore,  measures 
must  be  taken  not  only  to  develop  goods  exchange  as  medium  of 
local  trade,  but  also  to  inaugurate  within  the  hmits  of  possibihty 
and  expediency  the  circulation  and  use  of  money  as  a  means  of 
exchange."  ... 


Questions  on  the  foregoing  Readings 

1.  When  did  the  bolshevists  seize  the  reins  of  government  in  Russia? 

2.  When  was  the  bolshevist  constitution  adopted? 


MILITANT   SOCIALISM:    THE  BOLSHEVISTS  20? 

3.  Summarize  the  principles  expressed  in  Article  One,  Chapter  Two, 

of  the  bolshevist  constitution. 

4.  What  classes  of  citizens  were  allowed  to  vote  under  the  bolshevist 

regime? 

5.  Name  some  groups  of  individuals  which  were  excluded  from  the 

suffrage. 

6.  Define  the  "  dictatorship  of  the  proletariat  "  as  applied  by  the 

bolshevists. 

7.  Why  did   the  bolshevists  suppress   the   freedom  of   meeting  and 

other  similar  safeguards  to  the  liberty  of  the  individual? 

8.  In  what  terms  did  Lenin  defend  the  dictatorship  of  the  proletariat? 

9.  Why   did  he   consider   "  freedom  of   meeting  "   impossible   under 

bolshevism? 

10.  What  was  Lenin's  attitude  toward  freedom  of  the  press? 

11.  What,  according  to  Lenin,  was  the  essence  of  So\iet  authority? 

12.  What  did  the  bolshevists  urge  upon  radical  groups  in  countries 

other  than  Russia? 

13.  Outline  the  work  of  bolshevist  propagandists  in  foreign  countries 

with  regard  to  international  relations. 

14.  How  were  bolshevist  propagandists  instructed  to  act  with  regard 

to  the  internal  politics  of  foreign  countries? 

15.  Outline  the  aims  of  bolshevist  propagandists  "  in   the  economic 

sphere." 

16.  What  were  to  be  the  aims  of  bolshevist  propagandists  "  in   the 

military  sphere"? 

17.  Give   the   chief   reason   why   the   bolshevist   official,   Lopoushkin, 

feared  for  the  future  of  bolshevism. 

18.  What,  according  to  this  man,  were  the  general  effects  of  bolshevism 

in  Russia? 

19.  What  were  some  of  the  earlier  steps  taken  by  Lenin  in  the  matter 

of  a  return  to  capitalistic  methods? 

20.  What  is  the  importance  of  the  decree  issued  by  Lenin  on  August  9, 

1921? 

21.  Give  the  four  reasons  why  the  socialist  policv  of  the  bolshevists 

was  abandoned. 

22.  To  what  extent  did  the  decree  of  August  9,   1921,  provide  for 

private  control  of  production? 

23.  To   what  extent  did   this  decree   provide   for   the   application   of 

capitalistic  methods  to  commercial  intercourse  and  the  monetary 
system? 


CHAPTER  XVI 
THE   CASE   AGAINST   SOCIALISM 


Importance 
of  disprov- 
ing the 
labor  theory 
of  value. 


This  theory 
does  not 
account  for 
the  value  of 
land, 


nor  for  the 
value  of 
commodities 
in  the  nar- 
row, Marx- 
ian sense. 


91.   The  labor  theory  of  value  is  untrue  ^ 

The  most  striking  proof  of  the  untrustworthiness  of  socialism  is 
the  fact  that  the  whole  sociahst  doctrine  is  based  upon  false  principles. 
We  have  seen  that  sociaUsm  is  founded  primarily  upon  the  labor 
theory  of  value.  If  the  labor  theory  is  disproved,  therefore,  the  chief 
stone  is  removed  from  the  foundation  of  socialism.  In  the  following 
extract,  Professor  Le  Rossignol  explains  why  the  labor  theory  of 
value  is  untrue: 

[The  labor  theory  of  value,  or  the  labor-cost  theory,  as  it  is  often 
called],  certainly  does  not  account  for  the  value  of  land,  particularly 
of  unimproved  city  lots.  Such  land  can  be  exchanged  for  cotton, 
wheat,  hats,  silver,  or  gold,  and  must,  therefore,  have  some  property 
in  common  with  them  aU,  which  is  the  cause  and  measure  of  its  value. 
But  it  cannot  be  labor-cost,  for  land  is  a  product  of  nature.  .  .  . 

When  we  come  to  commodities  in  the  narrow,  Marxian  sense  of 
that  word,  we  find  innumerable  exceptions  to  the  supposed  law  that 
"commodities  in  which  equal  quantities  of  labor  are  embodied, 
or  which  can  be  produced  in  the  same  time,  have  the  same  value." 
Old  coins,  stamps,  manuscripts,  autographs,  birds'  eggs,  fossils,  and 
the  thousand  and  one  objects  dear  to  the  heart  of  collectors,  are  surely 
to  be  classed  as  commodities,  although  there  is  no  discoverable  rela- 
tion between  their  market  value  and  their  cost  of  product  as  measured 
in  labor-time.  What  was  the  labor-cost  of  the  Sistine  Madonna? 
What  would  be  its  cost  of  reproduction?  What  is  the  labor-cost  of 
a  rare  stamp  or  coin?  How  much  "congealed  labor"  is  there  in  the 
egg  of  that  extinct  bird,  the  Great  Auk,  which  sold  some  years  ago 
for  the  enormous  sum  of  $1200.    On  the  other  hand,  how  many  hours 

1  From  James  Edward  Le  Rossignol,  Orthodox  Socialism.  T.  Y.  Crowell  &  Co-, 
New  York,   1907;  pp.  15,    17-20. 

208 


THE   CASE  AGAINST   SOCIALISM  209 

of  human  labor  did  it  cost  to  build  the  pyramids,  how  many  sighs 
and  tears  and  drops  of  blood,  and  what  is  their  intrinsic  value  to-day? 

The  works  of  authors,  artists,  and  inventors  are  commodities  in   The  theory 
the  strictest  sense  of  that  word,  and  yet  their  market  value  has  no   ^^pfj^i^"^!^^ 
definite  relation   to  the  labor-time  spent  in  their  production.     A   value  of  the 
popular  noveHst  may  receive  $50,000  from  the  sale  of  a  book  written   ^^^'j^^^° 
in  six  months,  while  his  less  fortunate  brother,  after  spending  six  years   artists  and 
of  unrequited   toil,  must  publish  his  book  at  his  own  expense.   .   .  .   "iventors. 
He  has  not  been  able  to  produce  a  work  of  social  necessity;  therefore 
his  labor-time  is  wasted,  and  does  not  determine  the  value  of  the 
product.  .  .  . 

Commodities  subject  to  the  caprice  of  fashion  quickly  lose  their 
value  when  their  usefulness  is  gone,  no  matter  what  their  cost  of 
production  or  reproduction.  .  .  . 

Every  farmer  knows  that  the  labor- cost  theory  fails  to  explain   It  fails  to 
the  value  of  agricultural  produce.     On  some  lands  wheat  may  be   explain  Ae 
grown  at  a  cost  of  50  cents  a  bushel;    on  poorer  lands  at  75  cents,   agricultural 
$r,  or  fi.25,  and  yet  the  total  supply,  produced  at  various  costs,   P''o^"'^^« 
may  be  sold  on  the  same  market  at  $1  a  bushel.    This  law  of  varying 
costs  applies  to  the  production  of  all  raw  materials:    grain,  meat, 
leather,  cotton,  wool,  sugar,  lumber,  iron,  clay,  gold,  silver,  and  the 
rest,  because  of  the  fact  that  land  of  the  best  quality  is  hmited  in 
quantity.    In  fact,  the  land-cost  of  these  commodities  has  as  much 
to  do  with  their  value  as  their  labor-cost.     But  neither  land-cost, 
labor-cost,  or  capital-cost  can  be  regarded  as  of  prime  importance 
in  determining  the  value  of  the  product,  which  is  due  first  of  all 
to  utiUty,  or  the  power  which  commodities  have  to  satisfy  human 
wants. 

Finally,  the  value  of  staple  manufactured  articles,  factor}^  products,    The  value 
such  as  cotton  and  woolen  goods,  boots  and  shoes,  refined  sugar,    ^^^^^f^^. 
and  steel  rails,  is  not  determined  chiefly  by  their  labor-cost.    In  the   tured  goods 
first  place,  the  value  of  the  raw  material  of  which  they  are  composed 
is  not  so  determined.     In  the  second  place,  their  value  as  finished    is  not  e.x- 
products  is  not  determined  solely  by  cost,  which  limits  supply,  nor  by   ['^c'labor^ 
utility,  which  controls  demand,  but  by  both  of  these  factors  together,    theoo'  of 
Utility  and  cost  are  the  two  factors  which  determine  value,  and  of   ^^^'"^' 
these  utility  is  chief. 


2IO 


READINGS  IN  AMERICAN  DEMOCRACY 


as  the  busi- 
ness man 
knows. 


The  business  man,  whose  profits  arise  from  an  excess  of  revenue 
over  expenditure,  and  whose  losses  come  from  an  excess  of  expenditure 
over  revenue,  knows  well  that  the  value  of  his  goods  depends  as 
much  upon  the  demand  of  the  market  as  upon  cost  of  production  to 
himself  or  his  competitors.  What  he  must  first  of  all  do  is  to  supply 
an  article  which  will  satisfy  some  human  want,  otherwise  he  will 
not  be  able  to  sell.  A  useless  article  has  no  exchange  value,  no  matter 
how  great  its  cost.  .  .  . 


We  must 
reject 
Marx's 
statement 
that  the 
laborer  pro- 
duces all 
wealth. 


How  social- 
ism inter- 
prets the 
word 
"labor." 


The  need 
for  expert 
direction 
of  the 
workman. 


92.   The  laborer  does  not  produce  all  wealth  ^ 

From  the  above  extract  it  is  clear,  not  that  commodities  have 
value  in  proportion  as  labor  has  been  expended  upon  their  production, 
but  that  they  have  value  according  as  they  possess  utility  and  are 
scarce.  The  labor-theory  of  Marx  is,  therefore,  untrue.  From  this 
it  follows  that  we  must  also  reject  Marx's  statement  that  the  laborer 
produces  all  wealth.  If  some  commodities  are  valuable,  i.e.  con- 
stitute wealth,  without  regard  to  the  amount  of  labor  expended  upon 
them,  then  some  wealth  is  created  by  some  other  agency  or  influence 
than  labor  acting  alone.  In  the  following  extract  Mr.  Brasol  attempts 
to  substantiate  this  theoretical  conclusion  by  reference  to  practical 
conditions : 

The  erroneous  assertion  of  Marx  and  his  followers  that  labor  is 
the  sole  producer  of  wealth  becomes  still  more  accentuated  when 
we  remember  that  the  term  "labor"  in  socialist  theories  is  always 
connected  with  the  proletarian  class.  In  other  words,  the  formula 
that  labor  is  the  sole  producer  of  wealth,  in  the  socialist's  con- 
ception, must  read  as  follows:  "Manual  labor  is  the  sole  producer  of 
wealth." 

Considering  this  dogmatic  premise  in  relation  to  the  problem  of 
erecting  a  modern  office-building,  the  following  can  be  remarked: 

Five  hundred  masons  and  five  hundred  carpenters,  summoned  to 
erect  the  Woolworth  building,  would  be  unable  to  cope  with  this 
task.  The  erection  of  a  Woolworth  building  requires  the  knowledge 
and  services  of  an  architect,  an  engineer,  a  chemist,  and  a  technologist. 


*  From  Boris  L.  Brasol,  Socialism  versus  Civilization. 
New  York,  1920;  pp.  64-69. 


Chas.  Scribner's  Sons, 


THE   CASE  AGAINST  SOCIALISM  211 

Those  experts,  who  do  not  belong  to  labor  in  the  Marxian  sense,  are 

as  indispensable  to  the  erection  of  a  modern  building  as  the  carpenter 

and  the  mason.    In  one  sense  the  expert  is  even  more  indispensable 

than  the  manual  workman,  because  the  latter  can  be  replaced  by  the 

former,  while  the  contrary  is  not  tn.\e.     The  manual  workman  is 

unable  to  direct  the  activities  of  the  expert,  whereas  the  expert 

always  directs  the  activities  of  the  manual  workman.  .  .  . 

Therefore,  contrary  to  Marx's  affirmation,  we  must  realize  that   Not  two, 

modern  production  is  the  result,   not  of  two  factors  —  labor  and   ^^^ 

factors  are 

capital,  the  latter  being  but  crystallized  labor  —  but  of  at  least  four  involved  in 
factors,  namely,  physical  elements,  labor  in  the  Umited  sense  of  manual  production. 
labor,  mental  labor  of  the  expert  and  the  manager,  and  capital.  .  .  . 

Thus,  economic  practice  proves  that  production  is  by  no  means 
the  resvdt  of  only  two  factors  referred  to  by  Marx,  namely,  labor  and 
capital.  Production  is  a  process  by  which  business  ability  directs  the 
application  of  both  mental  and  manual  labor  to  the  physical  elements 
of  capital. 

Thus,  we  are  logically  compelled  to  repudiate  Marx's  assertion   The  con- 
that  labor  is  the  sole  producer  of  commodities.     Moreover,  recent   {^^^^°I\°^  . 

Mr.  HiUquit 

sociaUst  writers,  even  those  of  the  most  radical  type  —  such  as 
Mr.  Hillquit  —  have  admitted  that  Marx's  assertion  is  wrong.  In 
this  connection  Mr.  Hillquit  stated  as  follows:  "It  requires  no 
special  genius  to  demonstrate  that  all  labor  is  not  alike  nor  equally 
productive.  It  is  still  more  obvious  that  common  manual  labor  is 
impotent  to  produce  the  wealth  of  modern  nations  —  that  organiza- 
tion, direction,  and  control  are  essential  to  productive  work  in  the 
field  of  modern  production  and  are  just  as  much  a  factor  in  it  as 
mere  physical  effort." 

This  is  a  good  confession,  but  unfortunately  Mr.  Hillquit  and  his   His  failure 
colleagues,  both  in  Europe  and  in  the  United  States,  have  never  en-   f°  circulate 

It  among  the 
deavored  to  make  this  point  clear  in  the  workmen's  minds.    On  the   working 

contrary,  whenever  a  socialist  writer  or  a  bolshevist  agitator  appeals   classes. 

to  labor  directly,  we  always  hear  the  old  tune  of  the  Marxian  song, 

to  the  eflfect  that  labor  is  the  sole  producer  of  wealth,  that  capital 

is  nothing  but  crystaUized  labor,  and  that  "all  wealth  is  due  to  labor, 

therefore,  to  the  laborer  all  wealth  is  due." 

Such  tactics  are  indeed  mere  hypocrisy.     Notwithstanding  all 


212 


READINGS  IN  AMERICAN  DEMOCRACY 


'Insistence 
of  socialists 
upon  the 
labor  theory 
of  value. 


Interde- 
pendence of 
the  factors 
of  produc- 
tion. 


the  concessions  which  the  more  recent  sociaHst  writers  had  to  make 
to  the  opponents  of  sociaUsm,  they  stiU  profess  to  beHeve  that  manual 
labor  possesses  the  magic  faculty  of  producing  everything  without 
the  assistance  of  anybody  or  anything.  Therefore,  when  it  came 
to  put  the  Marxian  theory  into  practice,  Mr.  Trotzky  did  not 
hesitate  ...  to  exterminate  in  the  most  brutal  manner  some  fifty 
per  cent  of  the  Russian  railroad  engineers  and  skUled  workmen. 

It  is  a  characteristic  feature  of  modern  production  that  no  indi- 
vidual social  group  can  produce  commodities  without  the  material, 
physical,  or  intellectual  support  of  other  social  groups,  so  that  all 
those  social  groups  combined  form  the  productive  part  of  the  popu- 
lation. Thus,  modern  production  is  based  upon  the  cooperation 
of  various  social  groups.  The  moment  this  cooperation  has  ceased, 
the  whole  process  of  production  must  necessarily  break  down,  or  at 
least  experience  a  serious  disturbance.  ... 


The  pre- 
dictions of 
Marx  have 
not  come 
true. 


93.   The  masses  are  not  reduced  to  wage  slavery  ^ 

Both  Karl  Marx  and  his  followers  have  exaggerated  the  extent 
to  which  the  masses  of  the  people  were  being  reduced  to  "wage 
slavery."  The  impression  given  by  sociaUsts  is  that  the  great  major- 
ity of  individuals  are  miserable  wage  slaves,  while  all  of  the  good 
things  of  life  are  controlled  and  utilized  by  a  relatively  small  class 
of  "capitaHsts."  Marx  predicted  that  as  time  went  on  the  class 
of  wage  slaves  would  grow  larger  and  more  miserable,  while  the 
middle  classes  would  tend  to  disappear,  leaving  a  small  group  of 
exploiters  in  control  of  most  wealth.  These  predictions  have  not  come 
true.  The  industrialization  of  the  country  is  increasing  the  number 
of  wage-earners,  but  instead  of  sinking  into  misery,  these  groups  are 
increasingly  prosperous.  The  middle  classes  are  not  disappearing, 
but  are  growing.  Legislation  is  checking  the  concentration  of  wealth 
in  the  hands  of  a  few.  The  following  extracts  from  a  statistical 
study  by  Alvin  H.  Hansen  demonstrate  the  falsity  of  the  statement 
that  the  masses  of  the  people  are  reduced  to  wage  slavery: 


1  From  the  American  Statistical  Association,  Quarterly  Publication. 
Vol.  xvn,  December,  1920;  pp.  421-422. 


New  YorL 


THE  CASE  AGAINST   SOCIALISM 


213 


Table  III 


Urban  upper  and  middle  class, 

Rural  group 

Urban  workers 

Unclassified 


1870 

1880 

1890. 

1900 

10.4 

II. 4 

151 

16.2 

47-1 

43-7 

36.8 

35° 

34-4 

36.6 

38.8 

40.3 

8.1 

8.2 

9-3 

8.5 

I9I0 

19.  2 

324 

42.3 

6.0 


The  increas- 
ing indus- 
trialization 
of  the 
country. 


The  increasing  industrialization  of  the  country  and  the  relatively 
dechning  importance  of  agriculture  are  indicated  in  Table  III.  Here 
the  gainfully  employed  population  is  grouped  under  three  catego- 
ries, if  we  omit  from  our  consideration  that  portion  designated  as 
unclassified. 

The  first  group  includes  the  proprietors  and  officials,  the  lower 
salaried  and  professional  classes.  It  is  the  "white  collar"  urban 
population,  not  all  even  moderately  well  circumstanced,  but  consti- 
tuting on  the  whole  the  middle  and  upper  urban  class.  1 

The  second  group  is  composed  of  all  gainfully  employed  agricul- 
turists —  the  farmers,  tenants,  and  farm  laborers.  This  group  rep- 
resents what  remains  of  the  old  type  of  American  individualists. 
The  industrious  and  frugal  tenant  in  most  cases  still  becomes  in  time, 
though  with  increasing  difficulty,  a  farm  owner.  The  farm  laborer, 
with  the  exception  of  the  relatively  migratory  class,  hopes  to  save 
enough  to  set  up  as  an  independent  tenant.  Getting  on  is  still  largely 
a  matter  of  individual  push  and  initiative.  True,  the  problems  of 
organization  and  control  of  markets  loom  larger  and  larger,  but  the 
road  to  independence  and  advancement  is  still  open,  even  though 
it  is  not  so  easy  and  broad  as  before. 

The  third  class  is  composed  of  urban  workers  —  the  industrial 
wage-earners  and  servants.  They  are  for  the  most  part  shut  up  in 
the  wage  system.  If  they  are  to  better  their  condition  they  must 
do  so  not  by  way  of  escape  to  something  else,  but  by  improvement 
of  their  lot  as  wage-workers. 

The  farming  group  is  being  increasingly  cut  into  on  one  side  by  the 
business,  salaried  and  professional  group,  and  on  the  other  side  by 
the  industrial  wage-earners.     The   relative  growth   of   the   former 


The  com- 
position of 
the  three 
groups 


enumerated 
in  Table 
III. 


Decline  in 
the  size  of 
the  fanning 
group. 


214 


READINGS  IN  AMERICAN  DEMOCRACY 


38  %  of  our 

gainfully 

employed 

population 

are  still  in- 

ckpendent. 


group  would  seem  to  be  a  healthy  sign,  but  it  should  be  noted  that 
a  large  part  of  this  growth,  nearly  a  half,  in  fact,  is  due  to  the  rapid 
increase  of  the, lower  salaried  employees,  whose  position  is  certainly 
not  very  desirable.  Further  than  that,  not  only  is  the  rural  group 
decUning  in  relative  importance,  but  within  that  group  itself  the 
opportunities  for  advancement  are  narrowing  down,  as  has  already 
been  shown,  because  of  the  encroachment  of  tenants  and  farm  laborers 
upon  the  farm-owning  class. 

Yet  in  spite  of  these  tendencies  it  is  surprising  to  find  what  a 
large  proportion  of  the  gainfully  employed  population  are  business 
men,  farmers  and  professional  men.  [The  following  table]  shows 
that  in  1910  about  38  per  cent  still  belonged  to  this  independent 
class: 

Table  IV 


Proprietary      and      independent 

class 

Rural  and  urban  working  class . 
Unclassified 


1870 

1880 

1890 

1900 

44-3 

43-3 

41  5 

39  6 

47.6 

48.4 

49.2 

Si-9 

8.1 

8.2 

9-3 

8.5 

I9I0 


37-9 

56.0 

6.0 


Disregarding  again  the  unclassified,  the  gainfully  employed  popu- 
lation is  here  placed  in  two  groups.  One  group  is  composed  of  the 
business  and  professional  classes,  farmers  and  the  children  of.  farmers. 
The  latter,  of  course,  expect  to  become  independent  farmers  upon 
reaching  maturity,  and  hence,  while  Usted  as  laborers,  from  the 
standpoint  of  this  classification  they  may  properly  be  classed  with 
the  farmers.  This,  then,  is  the  industrially  independent  group, 
independent  not  so  much  from  the  standpoint  of  income  as  from  the 
standpoint  of  being  one's  own  boss. 

The  second  group  is  composed  of  the  rural  and  industrial  wage- 
earners  and  the  lower  salaried  employees.  No  doubt  some  of  this 
group  receive  incomes  in  excess  of  many  farmers,  and  even  of  pro- 
fessional and  business  men.  But  their  outlook  is  dififerent  because 
of  their  place  in  the  industrial  system.  .  .  . 


THE   CASE  AGAINST  SOCIALISM  215 

94.   Defects  of  socialist  production  ^ 

The  three  foregoing  selections  indicate  that  socialism  is  a  false   Further  ob- 

doctrine  because  based  upon  mistaken  premises.    Those  who  object   J'-"'^^'""^  to 

socialism, 
to  socialism  attack  the  doctrine  from  still  another  angle,  i.e.  they 

point  out  the  defects  of  the  economic  organization  which  sociahsm 
plans  to  establish.  Of  the  numerous  objections  to  the  industrial 
organization  of  a  socialist  state,  an  important  one  is  that  sociahsm 
could  not  build  up  or  maintain  an  effective  system  of  production. 
The  failure  of  bolshevism  in  Russia  threw  light  on  the  nature  of  sociahst 
production,  and  lent  weight  to  theoretical  arguments  which  have 
long  been  urged  against  socialism.  The  following  extract  from  the 
works  of  Dr.  A.  Schaeffle  constitutes  a  typical  example  of  the  ob- 
jections which  for  more  than  a  half  century  have  been  brought 
against  socialism  as  a  method  of  production: 

...  In  the  third  place,  social  democracy  [sociahsm]  promises  Socialism 
an  impossibility  in  undertaking,  without  danger  to  the  lefhciency  of  '^*^V'^|  "°* 
production,  to  unite  all  branches  of  it,  and  in  each  branch  all  the   coordinate 

separate  firms  and  business-companies  into  one  single  body  with         ,     . 

■        ^  ■'  productive 

uniform  labor-credit  and  uniform  estimation  of  labor-time.     Herein   forces  of 
it  goes  upon  the  supposition  that  the  whole  tendency  of  production   ^  nation. 
is  towards  business  on  a  large  scale  with  local  self-complete  branches 
on  factory  lines.     Yet  this  is  a  most  arbitrary  assumption.     Even 
in  trade  there  will  always  remain  over  a  mass  of  small  scattered 
pursuits  that  entirely  escape  control.  .  .  . 

In  agriculture  the  large  self-complete  factory  system  is  excluded   The  case  of 
by  the  nature  of  the  case.  ...  It  may  well  be  that  in  the  agriculture   agriculture 

Oners  spc~ 

of  the  future  there  will  be  more  and  more  introduction  of  collective  cial  obstacles 
administration  for  purposes  of  traction,  the  in-coming  and  out-going 
of  produce,  and  for  irrigation  and  draining,  for  the  common  use  of 
machinery,  and  for  operation  of  loading  and  despatch.  But  farming 
on  a  large  scale  ...  is  not  possible  as  a  universal  system;  .  .  .  agri- 
culture, unlike  other  industries,  tends  in  the  direction  of  small  or 
moderately  large  concerns.  .  .  .  And  how  in  any  case  could  it  be 
possible  without  any  authoritative  organ  of  control  or  regulation 

*  From  A.  Schaeffle,   The  Impossibility  of  Social  Democracy.     Swan,  Sonnen- 
schein  &  Co.,  London,  1892;  pp.  69-74. 


to  socialism. 


2l6 


READINGS  IN  AMERICAN  DEMOCRACY 


Socialism 
cannot  ful- 
fill its  prom- 
ise to  in- 
crease the 
national 
productiv- 
ity. 


The  reason 
for  this. 


to  draw  all  the  varied  and  scattered  branches  of  agricultural  labor 
into  one  simple  homogeneous  system,  and  to  reduce  aU  labor  to  terms 
of    average  social   labor-time.  .  .  .  Social   democracy  will   inevita-' 
blyfaU  to  pieces  at  last,  though  it  start  with   the  most  successful 
revolution  ever  achieved. 

Social  democracy,  in  the  fourth  place,  promises  to  the  industrial 
proletariat  a  fabulous  increase  in  the  net  result  of  dividends  of  the 
national  revenue,  and  a  general  rise  of  labor-returns  all  round.  This 
increased  productivity  of  industry  would  perhaps  be  conceivable 
if  a  firm  administration  could  be  set  over  the  collective  production, 
and  if  it  were  also  possible  to  inspire  all  the  producers  with  the  highest 
interest  alike  in  diminishing  the  cost,  and  in  increasing  the  pro- 
ductiveness of  labor.  But  social  democracy  as  such  refuses  to  vest 
the  necessary  authority  in  the  administration,  and  does  not  know 
how  to  introduce  an  adequate  system  of  rewards  and  punishments 
for  the  group  as  a  whole,  and  for  the  individuals  in  each  productive 
group,  however  necessary  a  condition  this  may  be  of  a  really  high 
level  of  production.  For  otherwise,  of  course,  there  would  be  no 
freedom  and  no  equality. 

Therefore,  on  the  side  of  productivity  again,  all  these  delusive 
representations  as  to  the  capacity  and  possibility  of  democratic 
collective  production  are  groundless.  Without  giving  both  every 
employer  and  everyone  employed  the  highest  individual  interest 
in  the  work,  and  involving  them  in  profits  or  losses  as  the  case  may 
be,  both  ideal  and  material,  it  would  be  utterly  impossible  to  attain 
even  such  a  measure  of  productivity  for  the  national  labor  as  the 
capitalistic  system  manages  to  extract  from  capital  profit,  even  in 
the  face. of  risk,  and  with  varying  scales  of  remuneration.  The 
introduction  of  even  stronger  and  more  effective  guarantees  of  uni- 
versal thrift  and  efiticiency  in  a  partially  collective  system  may  at 
first  sight  appear  to  be  not  impossible.  .  .  .  But  this  result  is  im- 
possible if  the  only  means  of  bringing  it  about  is  to  be  resolutely 
rejected  and  denied,  namely,  the  free  and  ungrudging  assignment  of 
a  larger  proportion  of  material  and  ideal  good  to  the  real  aristocracy 
of  merit.  Without  a  sufficiently  strong  and  attractive  reward  for 
individual  or  corporate  preeminence,  without  strongly  deterrent 
drawbacks  and  compensatory  obligation  for  bad  and  unproductive 


THE  CASE  AGAINST   SOCIALISM  217 

work,  a  collective  system  of  production  is  inconceivable,  or  at  least 
any  system  that  would  even  distantly  approach  in  efikiency  the 
capitalistic  system  of  to-day.  .  .  . 

So  long  as  men  are  not  incipient  angels  —  and  that  wUl  be  for  a  Conclusion, 
good  while  yet  —  democratic  collective  production  can  never  make 
good  its  promises,  because  it  will  not  tolerate  the  methods  of  reward 
and  punishment  for  the  achievements  of  individuals  and  of  groups, 
which  under  its  system  would  need  to  be  specially  and  peculiarly 
strong.  .  .  . 


95.   Defects  of  socialist  distribution  ^ 

Another  objection  to  the  program  of  sociahsts  is  that  the  socialist   A  further 

theory  of  distribution  is  defective.     Not  only  would  sociaUsm  find   "^Jy'^V"'^  ^° 

.  ,  .  .  socialism, 

it  dilTicult  or  impossible  to  maintain  effective  production,  but  social- 
ism has  been  unable  to  demonstrate  that  it  would  be  able  to  distribute 
wealth  in  accordance  with  the  principles  of  both  justice  and  economy. 
In  the  following  selection,  Professor  Ely  recapitulates  some  of  the 
chief  objections  to  sociahsm  as  a  scheme  of  distribution: 

We  have  already  learned  that  socialists  wish  to  secure  justice  in   Equality  a 

distribution,    but    that  they  have  not    been  able  to    agree  upon  a   fu^^l^n^^'ntal 

^  Of  principle  in 

Standard  of  distributive  justice,  although  they  now  generally  seem   the  socialist 
disposed  to  regard  equality  in  distribution  as  desirable.  d^T"^  r 

Equality  is  unquestionably  the  simplest  and  easiest  solution  of 
the  problem  of  distribution  under  socialism;  and  it  is  frequently 
argued  that  it  meets  all  the  requirements  of  distributive  justice, 
because  it  is  held  that,  essentially,  one  man  has  rights  equal  to 
those  which  any  other  enjoys. 

SociaUsm  compels  us  to  agree  upon  a  standard  of  distributive   Some  dif- 
justice  which  would  be  generally  acceptable,  and  which  would  enlist    f'^ulties  of 
the  services  of  the  most  gifted  and  talented  members  of  the  commu-   theory  of 
nity.    If  we  depart  from  the  principle  of  equality,  it  is  diflicult  in  the   ^'stnbution. 
extreme  to  estabhsh  any  standard  in  accordance  with  fixed  principles, 
calculated  to  settle  controversy.     Let  us  suppose  we  decide  to  dis- 
tribute material  goods  in  accordance  with  merit  or  service  rendered. 

1  From  Richard  T.  Ely,  Socialism  and  Social  Reform.  T.  Y.  Crowell  &  Co., 
New  York,  1895;  pp.  233-237. 


2I» 


READINGS  IN  AMERICAN  DEMOCRACY 


Examples; 


Difficulty  of 
distribution 
according  to 
needs. 


Some  further 
consider- 
ations. 


How  shall  we  decide  upon  the  value  of  different  services  when  com- 
pared with  one  another?  That  distribution  which  may  be  called 
ideal  is  one  that  leads  to  the  maximum  satisfaction  of  wants,  — 
that  is,  distribution  in  accordance  with  needs.  This  means  equal 
distribution  among  equals,  but  unequal  distribution  among  those 
who  are  unequal;  and,  as  a  matter  of  fact,  inequahties  among  men, 
in  capacity  and  requirements,   are  immense. 

It  is  desirable  to  satisfy  the  most  intense  wants  first,  and  then  the 
less  intense,  and  so  on  down  the  scale.  If  incomes  were  distributed 
equally,  there  are  men  whose  wants  are  so  hmited  that  they  would 
have  more  than  enough  for  the  satisfaction  of  every  need,  while  others 
would  be  deprived  of  the  means  for  the  satisfaction  of  genuine  and 
pressing  wants.  One  person  has  no  special  intellectual  gifts,  and  can 
soon  acquire  aU  the  education  which  will  be  beneficial  to  him.  .  .  . 
Another  has  great  gifts  which  fit  him  to  become  a  painter,  a  musician, 
or  an  original  scholar.  It  is  to  the  interest  of  society  that  the  faculties 
of  such  a  one  should  be  fully  developed,  and  that  for  their  develop- 
ment, the  tools,  implements,  and  opportunities,  for  the  exercise  of 
the  talent,  should  be  afforded.  .  .  .  Such  a  person  can  use  advan- 
tageously a  far  larger  income  than  the  average  mechanic  or  artisan. 

But  how  can  we  approximate  this  distribution  under  sociahsm? 
How  can  we  reach  agreement  in  regard  to  needs?  Each  one  may 
appreciate  his  own  needs  sufficiently,  but  will  he  appreciate  the  needs 
of  others,  especially  of  those  who  are  his  natural  superiors,  and  who 
require  ten  times  as  much  as  he  does?  WiU  the  ordinary  farmer  or 
industrial  toiler  cheerfully  agree  to  the  proposition  that  some  one 
else  needs  ten  times  as  much  as  he  does,  in  order  to  give  equal  satis- 
faction of  wants?  Unless  such  is  the  case,  we  shall  have  dissatisfaction 
and  discontent,  Ukely  to  impair  the  usefulness  of  sociahsm. 

And  this  is  not  all.  While  it  may  be  difficult  for  us  to  come  to  an 
agreement  in  regard  to  the  differences  in  the  value  of  services  rendered 
by  various  members  of  the  community,  a  little  careful  observation 
shows  us  that  the  difference,  after  all,  is  vast.  .  .  .  We  may  take 
a  single  industrial  establishment  and  we  shall  find  that,  while  under 
one  man  it  thrives,  under  another  it  languishes.  The  question  of 
success  is  dependent,  above  everything  else,  upon  right  leadership. 
Now  those  who  have  superior  gifts  and  capacities  are  generally  well 


THE  CASE  AGAINST  SOCIALISM  219 

aware  of  their  superiority.  They  know  that  they  render  more  valu- 
able services  than  others;  and  if  we  take  men  as  they  are  now,  or 
as  they  are  Ukcly  to  be  for  a  long  time,  we  have  every  reason  to 
believe  that  an  assignment  of  merely  equal  income  would  not  enlist 
in  socialistic  production  the  most  capable  members  of  the  community, 
in  such  a  manner  that  they  would  give  their  best  energies  to  the 
socialistic  state;  but  unless  we  could  secure  from  the  most  talented 
members  of  the  community  willing  service,  socialism  would  inevitably 
prove  a  failure.  ...  It  is  much  to  be  feared  that  men  cannot  be 
sociaUzed  to  that  extent  that  they  will  generally  accept  the  prin- 
ciple of  equal  reward  for  their  services,  even  could  it  be  shown  that 
it  were  desirable.  And  it  is  impossible  to  show  this,  for  quite  the 
contrary  is  true.  .  .  . 

All  this  brings  us  to  the  observation  that  there  is  great  danger  Conclusion 
that,  under  socialism,  the  true  requirements  of  those  engaged  in  the 
higher  pursuits  would  be  under-estimated,  and  that  the  importance 
of  those  occupations  which  contribute  most  to  the  advancement  of 
civilization  would  fail  to  secure  adequate  appreciation.  The  extent 
of  natural  inequalities,  and  the  differences  in  the  requirements  of 
men,  are  not  understood  by  the  masses  of  mankind;  and  it  is  extremely 
difficult,  if  not  impossible,  to  make  them  understand  those  inequalities 
and  differences.  This  being  the  case,  we  have  every  reason  to  appre- 
hend that,  under  socialism,  there  would  be  inadequate  provision  by 
the  masses  for  those  who  carry  forward  the  most  important  work; 
that  is  to  say,  those  whose  products  are  immaterial,  ministering  to 
the  higher  parts  of  our  nature.  If  this  is  so,  the  result  of  socialism 
would  be  a  non-progressive  society,  and  in  consequence  all  would 
finally  suffer,  because,  under  a  satisfactory  social  organization, 
every  class  will  sooner  or  later  share,  to  a  certain  extent,  in  the  ad- 
vantages resulting  from  progress  in  science,  art,  letters,  religion.  .  .  . 

96.   Socialism  not  necessary  to  industrial  reform  ^ 

The  objections  to  socialism  are  of  three  types.    In  the  first  place,    The  ohjec- 

sociaUst  theory  is  based  upon  a  fundamental  error;    in  the  second   ^""js  to 

socialism 
place,  the  industrial  organization  contemplated  by  socialism  is  seri-   are  of  three 

1  From  Richard  T.  Ely,  Socialism  and  Social  Kcjorm.     T.  Y.  Crowcll  &  Co.,    *^''**^*' 
New  York,  1895;  pp.  254-257. 


220 


READINGS  IN  AMERICAN  DEMOCRACY 


Capitalism 
defective, 


but  de- 

creasingly 

so. 

Is  there  a 

golden 

mean? 


Yes. 


ously  defective;  in  the  third  place,  it  is  the  belief  of  many  authorities, 
sociaUsm  is  not  necessary  to  industrial  and  social  reform.  The 
preceding  selections  illustrate,  to  a  slight  degree,  the  false  basis  of 
sociaUsm  and  the  defects  of  its  proposed  industrial  organization;  it 
remains  to  be  pointed  out  that  we  have  good  reason  to  hope  for  the 
adequate  reform  of  our  industrial  system  without  resorting  to  social- 
ism. In  the  following  selection  Professor  Ely  takes  this  point  of 
view: 

We  have  at  present  an  imperfect  social  organism.  It  moves  for- 
ward, creaking  and  groaning,  and  splashes  the  blood  of  its  victims  over 
us  all.  .  .  .  But  our  social  organism  does  move  forward.  If  there 
is  a  submerged  tenth,  there  are  nine-tenths  not  submerged,  and 
nine-tenths  are  more  than  one-tenth.  Let  us  take  care  to  chng  to 
that  which  we  have  achieved.  It  will  not  do,  in  efforts  to  save  one- 
tenth,  to  run  serious  risk  of  submerging  nine-tenths.  Perhaps  never, 
since  the  days  of  Christ,  taking  the  world  as  a  whole,  did  the  pro- 
vision for  material  wants  so  nearly  approximate  a  sufficiency  for  all 
as  at  present.  .  .  . 

The  light  of  civilization  is  gradually  becoming  brighter,  warmer, 
and  its  rays  are  slowly  penetrating  farther  and  farther  into  the 
darkness. 

That  wise  old  sage,  Aristotle,  said  that  virtue  consisted  in  avoiding 
the  too  much  and  the  too  little.  Is  there  not  a  golden  mean  between 
the  little  (namely,  rigid,  obstructive  and  revolutionary  conservatism, 
—  that  conservatism  which  refuses  to  recognize  defects  in  the  existing 
social  order,  and  resists  obstinately  all  reform  of  progress),  —  and 
the  too  much;  (namely,  reckless  radicalism,  which,  in  reaching  out 
for  improvement,  risks  the  treasures  accumulated  during  so  many 
ages,  treasures  so  painfully  gathered  together)  ?  Can  we  not,  in  our 
industrial  life,  keep  what  we  have  that  is  valuable,  and  escape  some  of 
the  evils  which  sociaUsm  has  so  vividly  depicted?  And  let  us  frankly, 
fully,  without  equivocation,  acknowledge  the  great  services  which 
socialism  has,  in  this  as  in  other  respects,  rendered  society.  Can 
we  not  carefully,  conservatively  add  to  our  social  order  some  of  the 
strong  features  of  sociaUsm,  and  yet  keep  this  social  order  intact? 
It  seems  to  the  author  that  this  is  practicable.  .  .  . 

One  question  which  meets  us  at  the  threshold  of  our  inquiries  con- 


of  social 
reform. 


THE  CASE  AGAINST  SOCIALISM  221 

cerns  the  possibility  of  reform.  Can  we  accomplish  the  ends  which  The  promise 
we  have  in  view,  and  will  the  effort  which  we  put  forward  to  accom- 
plish these  ends  meet  with  a  return  commensurate  with  the  exertion 
involved?  It  is  frequently  urged  that  all  our  efforts  amount  to  so 
httle  that  it  is  not  worth  our  while  to  try  to  improve  society.  When 
we  look  into  the  efforts  to  accompUsh  reform  in  the  past,  we  cannot 
find  reason  for  discouragement;  quite  the  contrary.  Well-directed 
effort  has  accomplished  great  things;  and  we  are  warranted  in  the 
belief  that  a  thorough  reformation  of  society,  and  the  reduction  of 
social  evils  to  very  low  terms,  if  not  a  complete  abolition,  is 
practicable.  .  .  . 


Questions  on  the  foregoing  Readings 

1.  What  is  the  most  effective  method  of  attacking  socialism? 

2.  Why  cannot  the  labor  theory  of  value  explain  the  value  of  land? 

3.  What  can  be  said  as  to  the  inability  of  this  theory  to  explain  the 

value  of  old  coins,  stamps,  and  similar  commodities? 

4.  Illustrate   the  fallacy  of   the   theory   with  regard   to   agricultural 

produce. 

5.  What,  according  to  Professor  Le  Rossignol,  are  the  factors  which 

really  determine  value? 

6.  What  is  Mr.   Brasol's  reason   for   saying  that   the   formula   that 

labor  is  the  sole  producer  of  wealth  must  read  as  follows: 
"  Manual  labor  is  the  sole  producer  of  wealth"? 

7.  How  does  the  erection  of  the  Woolworth  Building  disprove  the 

statement  that  manual  labor  is  the  producer  of  all  wealth? 

8.  What    criticism    does    Mr.    Brasol    bring    against    the    American 

socialist,  Mr.  Hillquit? 

9.  What,   according   to   Mr.    Brasol,   is   a   characteristic   feature   of 

modern  production? 

10.  What  per  cent  of  the  gainfully  employed  population  of  the  United 

States  was  included  in  the  term  "  urban  upper  and  middle 
class  "  in  igio?  What  per  cent  were  in  the  rural  group?  What 
per  cent  were  urban  workers? 

11.  What  is  meant  by  the  "  white  collar  "  urban  population? 

12.  What  types  of  individuals  are  included  in  the  "rural  group"? 

13.  What  type  of  workers  make  up  the  group  listed  by  Mr.  Hansen  as 

"  urban  workers'"? 

14.  What  proportion  of  our  gainfully  employed  population  belonged 

to  the  independent  class  in  19 10? 


222  READINGS  IN  AMERICAN  DEMOCRACY 

15.  How  does  agriculture  illustrate  the  difficulties  confronting  socialism 

in  the  field  of  production? 

16.  Under  what  circumstances,  according  to  Schaeffle,  would  socialism 

possibly  be  able  to  increase  the  productivity  of  industry? 

17.  Why   did   he   not   believe   that   such   an   increase   would  actually 

come  about? 

18.  What,  in  brief,  is  the  objection  to  socialism  as  a  method  of  dis- 

tributing wealth? 

19.  What  is  unquestionably  the  simplest  and  easiest  solution  of  the 

problem  of  distribution  under  socialism? 

20.  What  is  Professor  Ely's  chief  objection  to  this  plan  of  distribution? 

21.  What  is  his  conclusion  with  regard  to  socialism  as  a  method  of 

distributing  wealth? 

22.  What  are  the  three  types  of  objections  to  socialism? 

23.  What  does  Professor  Ely  say  as  to  the  imperfection  of  the  social 

organism  at  the  present  time? 

24.  What  did  Aristotle  believe  to  be  the  nature  of  virtue? 

25.  How   does   Professor   Ely  apply   Aristotle's  concept  of   virtue   to 

the  industrial  situation? 


CHAPTER  XVII 


A  DEMOCRATIC   PROGRAM    OF   INDUSTRIAL 

REFORM 

97.   The  program  outlined  ^ 

A  number  of  constructive  thinkers  have  maintained  that  it  is 
possible  to  reform  our  industrial  system  without  resorting  to  so- 
cialism. Many  of  these  students  have  offered  suggestions  of  a  con- 
structive nature,  but  Professor  Carver  alone  has  combined  the  various 
elements  of  industrial  and  social  reform  into  a  definite  program  which 
appears  not  only  sound  but  workable,  that  is  to  say,  workable  if 
we  choose  to  apply  it.  The  following  is  Professor  Carver's  outline 
of  a  democratic  program  of  industrial  and  social  reform: 

How  to  secure  equality  oj  wealth  with  liberty,  without  sacrificing  any- 
thing that  we  now  prize,  such  as  private  property,  freedom  of  contract, 
freedom  of  initiative,  and  economic  competition.  {Parts  of  the  program 
are  arranged  in  the  inverse  order  of  their  importance.) 


Professor 
Carver's 
program  of 
industrial 
and  social 
reform 


I.   Legislative  Program 

A.  For  the  redistribution  of  unearned  wealth. 

1.  Increased  taxation  of  land  values. 

2.  Graduated  inheritance  tax. 

3.  Control  of  monopoly  prices. 

B.  For  the  redistribution  of  human  talent. 

1.  Increasing  the  supply  of  the  higher  or  scarcer  forms  of  talent. 

(c)  Vocational  education,  especiallj'  for  the  training  of 
business  men. 

{b)  Cutting  off  incomes  which  support  capable  men  in  idle- 
ness, thus  increasing  the  supply  of  active  talent, 
cf.,  I,  2,  and  3,  under  A. 

2.  Decreasing  the  supply  of  the  lower  or  more  abundant  forms 

of  labor  power. 

•  From  Thomas  Nixon  Carver,  Essays  in  Social  Justice.    Harvard  University 
Press,  Cambridge,  Mass.,  1915;  pp.  264-265. 

223 


is  divided 
into  a  legisla- 
tive 


224 


READINGS  IN  AMERICAN  DEMOCIL\CY 


(a)  Restriction  of  immigration. 
(6)   Restriction  of  marriage. 

(i)   Elimination  of  defectives. 

(2)   Requirement  of  minimum  standard  income. 

(c)  Minimum  wage  law. 

(d)  Fixing  building  standards  for  dwellings. 
For  the  increase  of  material  equipment. 

1.  Increasing  the  available  supply  of  land. 

2.  Increasing  the  supply  of  capital. 

(a)  Thrift  versus  luxury. 

(b)  Savings  institutions. 

(c)  Safety  of  investments. 

(d)  "  Blue  sky  "  laws. 


and  a  non- 
legislative 
part. 


II.   Non-Legisl.\tive  Program 

A.  Raising  the  standard  of  living  among  the  laboring  classes. 

(a)  The  function  of  the  advertiser. 

(b)  The  educator  as  the  rationalizer  of  standards. 

(c)  Thrift  and  the  standard  of  living. 

{d)  Industrial  cooperation  as  a  means  of  business  and  social 
education. 

B.  Creating  sound  public  opinion  and  moral  standards  among  the 

capable,  e.g. 

1.  The  ambition  of  the  family  builder.  ^ 

2.  The  idea 

(a)  That  leisure  is  disgraceful; 

(b)  That  the  productive  life  is  the  religious  and  moral  life; 

(c)  That  wealth  is  a  tool  rather  than  a  means  of  gratification; 

(d)  That  the  possession  of  wealth  confers  no  license  for  luxury 

or  leisure; 

(e)  That  government  is  a  means  not  an  end. 
'3.    Professional  standards  among  business  men. 

C.  The    discouraging   of   vicious   and    demoralizing   developments   of 

public  opinion,  such  as: 

1.  The  cult  of  incompetence  and  self-pity. 

2.  The  gospel  of  covetousness,  or  the  jealousy  of  success. 

3.  The  emphasizing  of  rights  rather  than  obligations. 

4.  The  worship  of  the  almighty  ballot  and  the  almighty  dollar. 

5.  The  idea  that  a  college  education  should  aim  to  give  one  a 

"  gentlemanly  appreciation  "  of  the  ornamental  things  of 
life,  such  as  literature,  art,  golf,  and  whiskey,  rather  than 
to  strengthen  one  for  the  serious  work  of  life. 

6.  The  idea  that  the  capitalization  of  verbosity  is  constructive 

business. 


PROGRAM   OF  INDUSTRIAL  REFORM  225 

98.   Taxation  as  a  method  of  attacking  unearned  wealth  ' 

From  an  economic  viewpoint,  justice  consists  in  giving  every  indi-   Applying  th« 
vidual  just  what  he  earns,  no  more,  no  less.    The  first  step  in  the   P""5'p'^  °^ 

^  justice  to 

democratic  program  of  industrial  reform  is  to  apply  the  principle   the  problem 

of  justice  to  large  incomes.    This  does  not  mean  that  large  incomes   °^  unearned 

.  .  wealth, 

are  necessarily  objectionable,   for  large  incomes  may  be  as  truly 

earned  as  small  incomes.  Democracy  will  tolerate  no  legal  inter- 
ference with  incomes  which  are  earned,  however  large.  On  the  other 
hand,  there  is  a  growing  feeling  that  the  community  ought  to  de- 
prive individuals  of  wealth  which  is  unearned.  In  the  following 
selection  Professor  Seligman  calls  attention  to  the  growing  tendency 
to  use  taxation  as  a  means  of  levehng  the  inequalities  of  wealth: 

Finally,  we  notice  the  tendency  in  taxation  away  from  individual  A  recent 
to  social  considerations.  This  is  responsible  for  the  idea  of  progression  ^^"^^."'^y  "^ 
or  graduation  in  our  income  taxes;  it  is  responsible  for  the  differen- 
tiation or  distinction  between  earned  and  unearned  incomes,  as  we 
find  it  abroad  and  shall  soon  find  it  here.  It  is  responsible  for  the 
exemptions  granted  for  general  social  reasons.  By  this  we  do  not 
refer  so  much  to  the  exemptions  in  the  income  tax  as,  for  instance, 
to  the  exemption  of  mortgages  from  taxation  in  our  property  tax, 
or  the  exemption  of  money  and  credits. 

Again,  to  this  cause  we  must  refer  the  modern  movement  for  a   Professor 

higher  tax  on  land,  especially  in  local  finance.     I  am,  indeed,  not  a   S/^''^""^".  °" 

,  the  relation 

single-taxer  —  far   from   it  —  for   the   single-tax   philosophy   makes   of  the 

two  fundamental  mistakes.    It  neglects  the  distinction  .  .  .  between   f'^^'e  tax 

^  to  taxation 

real  or  specific  taxes  and  personal  taxes.  When  the  single-taxer  says  reform, 
that  land  alone  should  be  taxed,  he  is  thinking  only  of  things.  But  .  .  . 
this  distinction  does  not  apply  at  all  to  the  entire  class  of  taxes  on 
persons.  The  income  of  an  individual  may  be  derived  not  from  things 
or  property  but  from  relations,  from  salaries,  from  good  will,  from 
copyrights,  from  all  sorts  of  intangible  and  invisible  circumstances. 
The  distinction  between  land  and  other  things  docs  not  affect  in  the 
least  the  obligation  of  the  person  to  contribute  to  the  support  of 
government  for  income  derived  not  from  things.    In  the  second  place, 

*  From  Edwin  R.  A.  Seligman,   "Presidential  .Address,"  delivered  before  the 
International  Tax  Association  at  Denver,  Colo.,  September,  1914. 


226 


READINGS  IN  AMERICAN  DEMOCRACY 


Higher 
taxes  on 
land  may 
be  socially 
desirable. 


the  single-taxers  either  revert  to  the  long  outworn  idea  of  benefits, 
or  inordinately  exaggerate  the  element  of  privilege  in  the  conception 
of  faculty.    They  erect  into  a  whole  what  is  only  a  part. 

While,  therefore,  I  must  consider  the  single-tax  philosophy  as 
essentially  incomplete,  it  is  none  the  less  true  that  a  higher  taxation 
of  land  or,  rather,  if  you  will  —  in  order  to  differentiate  my  idea  from 
that  of  exempting  improvements  in  the  local  real  estate  tax,  in  which 
I  do  not  believe  —  it  is  none  the  less  true  that  an  additional  tax  on 
land  may  be  entirely  legitimate  from  the  social,  rather  than  from 
the  individual,  point  of  view. 

And,  finally,  as  I  have  often  pointed  out,  certain  indirect  taxes 
which  cannot  be  upheld  at  all  from  the  point  of  view  either  of  benefits 
or  of  faculty  in  taxation  become  perfectly  explicable  when  we  regard 
them  from  the  social,  rather  than  the  individual,  point  of  view, 
i.e.  from  the  point  of  view  of  their  consequences  on  the  body  economic 
rather  than  from  that  of  the  relation  of  one  individual  to  another.  .  .  . 


Justice 
would  not 
necessarily 
eliminate 
poverty. 


Vocational 
guidance. 


99.   The  promise  of  vocational  guidance  ^ 

Applying  the  principle  of  justice  would  reform  our  industrial 
system  to  the  extent  that  it  would  eliminate  or  greatly  reduce  the 
amount  of  unearned  wealth  in  existence.  But  justice,  i.e.  giving 
individuals  exactly  what  they  earn,  would  not  necessarily  improve 
the  condition  of  all  of  the  poor,  since  some  of  these  are  not  able 
really  to  earn  enough  to  support  themselves  and  their  families  prop- 
erly. From  the  economic  standpoint,  a  first  step  toward  per- 
manently helping  the  poor  is  to  make  it  possible  for  them  reaUy 
to  earn  decent  wages.  Of  the  numerous  measures  which  aim  at  the 
increase  of  wages  without  violating  economic  laws,  none  is  more 
important  than  the  movement  for  training  unskilled  and  poorly 
paid  individuals  toward  the  less  crowded  and  better  paid  positions. 
The  following  extract  from  a  statement  of  principles  adopted  by  the 
National  Vocational  Guidance  Association  in  192 1  illustrates  the 
scope  and  promise  of  the  vocational  guidance  movement: 


t 


'  From  the  National  Vocational  Guidance  Association,  "Principles  Adopted  in 
Convention,"  Atlantic  City,  February  25  and  26,  1921. 


PROGRAM  OF  INDUSTRIAL   REFORM  227 

I.   Foreword 

I.  The  term  "vocational"  comprises  all  occupations  recognized  Scope  of 

in   the   census   list,   including   agricultural,   industrial,    commercial,  h^^g^™ 

homemaking,   and  professional  callings.  .  ,  .  tional." 

II.    The  Need  for  Vocational  Guidance 
3.   Education  is  provided  to  enable  pupils  to  understand  their   The  need 
environment,  and  to  qxtend,  organize,  and  improve  their  individual   [j'oJf"^" 
and  cooperative  activities,  and  to  prepare  them  for  making  more   guidance, 
wisely  the  important  decisions  which  they  are  called  upon  to  make 
throughout  hfe.  .  .  . 

III.  Aims  of  Vocational  Guidance 
6.   The  purposes  of  vocational  guidance  are:  Its  aims, 

(a)  To  help  adapt  the  schools  to  the  needs  of  the  pupils  and  the 
community,  and  to  make  sure  that  each  child  obtains  the  equaUty 
of  opportunity  which  it  is  the  duty  of  the  pubhc  schools  to  provide. 

(6)  To  assist  individuals  in  choosing,  preparing  for,  entering  upon, 
and  making  progress  in  occupations. 

(c)  To  spread  knowledge  of  the  problems  of  the  occupational 
world  and  the  characteristics  of   the   common  occupations. 

(d)  To  help  the  worker  to  understand  his  relationships  to  workers 
in  his  own  and  other  occupations  and  to  society  as  a  whole. 

(e)  To  secure  better  cooperation  between  the  school  on  the  one 
hand  and  the  various  commercial,  industrial,  and  professional  per- 
suits  on  the  other  hand. 

(/)  To  encourage  the  estabUshment  of  courses  of  study  in  all 
institutions  of  learning  that  will  harmoniously  combine  the  cultural 
and  practical  studies. 

7.  All  vocational  guidance  should  help  to  fit  the  individual  for 
vocational  self-guidance,  and  also  for  the  cooperative  solution  of 
the  problems  of  occupational  hfe.  .  .  . 

V.  Studying  the  Occupations 
15.  Teachers,  counselors,  or  investigators  should  be  given  time  to 
study  occupational  needs  and  opportunities,  or  definitely  appointed 


The  study 
of  occupa- 
tional 
questions. 


228 


READINGS  IN  AMERICAN  DEMOCRACY 


for  that  purpose,  and  should  prepare  information  so  obtained  for 
use  by  teachers,  pupils,  and  parents. 

16.  The  class  for  the  study  of  educational  opportunities,  common 
and  local  occupations,  and  the  problems  of  the  occupational  world, 
should  be  carried  on  before  the  end  of  the  compulsory  school  age. 
Such  study  should  be  provided  for  all  students  in  junior  high  and 
high  schools.  It  should  give  the  pupil  an  acquaintance  with  the  en- 
tire field  of  occupations,  and  a  method  of  studying  the  occupations 
wherewith  he  can  meet  future  vocational  problems  in  his  life.  The 
study  of  occupations  should  be  offered  in  continuation  schools, 
evening  schools  for  adults,  and  colleges.  .  .  . 


.1 


The  choice 
of  a  voca- 
tion. 


Some  dan- 
gers to  be 
guarded 
against. 


VII   Choosing  the  Vocation 

21.  Occupations  should  be  chosen  with  service  to  society  as  the 
basic  consideration,  and  with  personal  satisfaction  and  remuneration 
as  important  secondary  considerations. 

22.  Scientific  vocational  guidance  should  discourage  and  supplant 
any  attempt  to  choose  occupations  by  means  of  phrenology,  phys- 
iognomy, or  other  disproved  and  unproved  hypotheses. 

23.  Alluring  short  cuts  to  fortune,  as  represented  by  certain 
advertisements  in  current  magazines  and  newspapers,  should  be 
condemned  and  supplanted  by  trustworthy  information  and  frank 
discussions  with  children. 

24.  The  choice  of  an  adult  occupation  should  not  be  made  too 
early  or  too  hurriedly  and  should  be  made  by  the  person  after  his 
study  of  occupations  and  his  try-out  experiences.  It  should  be  an 
education  process  by  progressive  elimination.  Provision  should  be 
made  for  reconsideration  and  rechoice.  Care  shoxild  be  taken  that 
the  choice  be  made  by  the  individual  himself.  .  .  . 


The  neces- 
sity of  con- 
necting the 
man  and 
the  job. 


100.    Connecting  the  man  and  the  job  ^ 

From  the  standpoint  of  industrial  reform,  the  movement  toward 

vocational  education  and  guidance  is  doubly  beneficial.     In  the  first 

place,  it  increases  the  number  of  trained  workers  in  the  community, 

and  thus  increases  the  productivity  of   particidar  classes;    in  the 

1  From  John  B.  Andrews,  Labor  Exchmiges.    Senate  Document  No.  956.    Wash- 
ington, 1915;  pp.  3,  8-10. 


PROGRAM  OF  INDUSTRIAL  REFORM  229 

second  place,  it  may  decrease  the  number  of  unskilled  workers.  But 
even  though  the  workman  has  been  trained  to  perform  work  valuable 
to  the  community,  his  training  may  be  wasted  unless  he  can  find  the 
position  for  which  he  is  fitted.  An  essential  part  of  the  democratic 
program  of  industrial  reform,  therefore,  is  the  connecting  of  man 
and  job.  In  the  following  selection,  Mr.  John  B.  Andrews  suggests 
a  national  system  of  labor  exchanges,  to  aid  in  this  connecting-up 
process: 

It  is  apparent  to  any  one  who  knows  anything  about  the  subject   Condition 
that  our  labor  market  is  unorganized,  and  that  there  is  a  tremendous   |^  J^^^  '^^'^^ 
waste  of  time  and  energy  in  the  irregular  and  haphazard  employ- 
ment of  w-orkers.     It  is  this  very  great  social  waste  which  we  are 
just  beginning  to  appreciate,  but  every  method  for  overcoming  it 
so  far  tried  in  America  has  been  painfully   inadequate.  .  .  . 

[What  is  needed  is  a  national  system  of  employment  bureaus.    We  need  a 
This  system]  should  comprise  three  main  divisions:    (i)  The  central   "^^^^"|J|^'yf 
office   at   Washington,  (2)  a   number   of    district    clearing    houses,    employment 
and  (3)  the  local  labor  exchanges.    Let  us  briefly  sketch  the  special     "'"'^'^"s- 
functions  of  each. 

The  central  office,  from  its  vantage  point  in  the  National  Cap-   Functions 
ital,  and  as  an  integral  part  of  the  Federal  Department  of  Labor,    °   '^d^'^^n- 
would  have  the  task  of  organizing  the  entire  system,  coordinating   tral  office: 
its  various  elements,  and  supervising  its  operation.    The  first  activ-   g^pgr^-ision 
ity  in  connection  with  such  a  national  bureau  is  the  establishment   of  the 
and  conducting  of  pubUc  labor  exchanges.    These  should  be  built    ^  "  ' 

up,  with  careful  regard  to  existing  state  and  municipal  bureaus, 
as  rapidly  and  in  as  many  parts  of  the  country  as  finances  will 
permit.  .  .  . 

A    second    large    duty    of    the    Federal    'oureau    would    be    that    root^eration 
of  cooperating  with,  encouraging,  assisting,  and  to  some  extent  rcg-    ^j'^j^^j^^g " 
ulating  all  the  public  employment  offices  conducted  by  other  sub-    offices, 
divisions  throughout  the  country  —  state,  county,  town  or  village. 
The  lack  of  cooperation,  the  failure  to  interchange  information  of 
vital  importance  to  workmen  and  employers,  is  one  of  the  sad  fea- 
tures of  the  pubHc  employment  bureau  situation   at   the  present 
time.     Here  is  a  great  field  for  the  standardizing  activities  of  a 
Federal  bureau.  .  .  . 


230 


READINGS  IN  AMERICAN  DEMOCR.^CY 


inauguration 
of  district 
clearing 
houses, 

and  pub- 
licity 
work. 


Nature  of 
the  district 
clearing 
house. 


Functions 
of  the  local 
labor 
exchanges. 


Summary 
and  con- 
clusions. 


A  third  duty  of  a  Federal  employment  bureau  would  be  the  divi- 
sion of  the  country  into  districts  and  the  inauguration  therein  of 
district   clearing  houses.  .  .  . 

Fourth  among  the  duties  of  the  central  office  would  be  to  carry 
on  a  campaign  of  the  fullest  possible  pubhcity  on  the  condition  and 
fluctuations  of  the  country's  labor  market.  .  .  .  The  information 
of  labor  supply  and  demand  thus  secured  could  then  be  compiled 
and  published  in  a  number  of  attractive  ways  which  opportunity 
and  ingenuity  will  suggest.  .  .  . 

The  district  clearing  houses  already  mentioned  are  quite  distinct 
from  the  local  labor  exchanges,  and  must  not  be  confused  with  them. 
The  clearing  house  finds  no  positions.  Its  functions  are  to  exchange 
information  between  the  local  exchanges,  and  between  other  cor- 
respondents in  its  district,  to  receive  daily  reports  from  all  public 
exchanges  within  its  jurisdiction,  and  reports  from  private  agencies 
at  least  weekly,  and  to  compile  and  pubhsh  these  data  for  its  dis- 
trict. It  also  carries  on  an  interchange  of  information  with  the  clear- 
ing houses  in  other  districts.  .  .  . 

The  functions  of  the  ultimate  units  in  this  system,  the  local  labor 
exchanges,  may  aU  be  summed  up  in  the  words,  "bringing  together 
workmen  of  all  kinds  seeking  employment  and  employers  seeking 
workmen."  The  good  superintendent  of  a  pubUc  employment  office 
wiU  not  wait  behind  his  counter  for  employers  and  employees  to 
hunt  him  up  and  to  use  his  office  as  a  medium  for  coming  together; 
he  will  take  active  steps  in  the  process.  By  judicious  telephoning, 
issuing  circulars,  newspaper  advertising,  newspaper  pubhcity,  and 
in  other  ways  he  will  constantly  bring  his  office  to  the  attention 
of  those  who  should  use  it.  .  .  . 

Thus  the  jurisdiction  of  the  projected  Federal  bureau  would  ex- 
tend throughout  the  count r}^  over  every  organized  interstate  agency 
for  the  securing  of  employment  or  of  workers.  Not  only  its  own 
and  other  pubUc  officers  would  be  amenable  to  its  regulation,  but 
also  private  money-making  enterprises  and  philanthropic  bureaus, 
in  so  far  as  their  activities  transcended  state  borders.  In  addition 
to  its  regulative  activities,  it  would  operate  exchanges  on  its  own 
account,  build  up  a  clearing-house  system  for  employment  infor- 
mation, and  pubhsh  and  distribute  that  information  as  widely  as 


PROGR.\M  OF  IXDUSTRL\L  REFORM  23 1 

it  coulA  In  short,  in  the  words  of  Mr.  Frank  P.  Walsh,  an  advocate 
of  the  system,  it  would  "do  evervthing  possible  to  aid  in  securing 
the  fvillest  application  of  the  labor  force  of  the  country."  .  .  . 

101.   The  purpose  of  labor  legislation  ^ 

One  of  the  essential  features  of  our  industrial  system  is  the  large  The  restric- 
degree  of  liberty  which  the  indiv-idual  enjoys  in  his  economic  re-   i^dlistrial 
lations.     As  a  general  proposition,  it  is  desirable  to  restrict  this   liberty  may 
hberty  as  little  as  possible;    at  the  same  time,  we  are  coming  to  ^^^ 
realize  that  legal  restrictions  upon  personal  Hberty  may  be  neces- 
sary if  the  rights  of  the  indi\'idual  and  the  rights  of  the  conmiunity 
are  to  be  safeguarded.     \Mien  careless  or  unscrupxilous  employers 
tolerate  harmful  conditions  of  emplojinent,  or  when  ignorant  or 
careless  employees  enter  employments  which  react  to  their  injur}', 
it  is  time  for  the  state  to  enact  regulative  legislation.    In  the  fol- 
lowing selection  Professor  Carlton  explains  the  purpose  and  forms 
of  labor  legislation: 

Societ>'  is  slowly  coming  to  the  realization  of  the  fact  that  equal   Necessity  of 
treatment   of  unequals  often  results  in  gross  injustice.     Strong,   t^on'^for 
well-organized  workers  may  not  need  protective  laws,  the  professional   certain 
man  may  not,  although  he  usually  wishes  legal  enactments  as  to 
professional   requirements   for   entrance   into   the  profession;     but 
the  chUd  and  unorganized  or  poorly  organized  men  and  women 
workers  certainly  are  at  a  disadvantage  in  bargaining  with  weU- 
organized  capital.     Legal  protection  is  necessary-  in  order  to  insure 
fair,  or  even  decent,  treatment.  .  .  . 

The  police  power  of  the  state  furnishes  the  legal  basis  for  labor  Funda- 
legislation;    but  the  fundamental  sanctions  are  social  and  economic   ^^^  ^f 
rather  than  purely  legal.  .  .  .  Long  working  days,  speeded-up  workers,   l^twr  legis- 
insanitarj'  shops,  dangerous  machiner>',  —  all  tend  to  render  workers 
and  their  descendants  weaker  and  more  inefficient,  and  to  lower 
the  physical,  mental,  and  moral  stamina  of  the  race.  ...  In  the 
name  of  human  progress,  it  is  the  duty  of  society  through  its  ex- 
ecutive machine,  the  government,  to  reduce  and  finally  to  remove 
the  evils  now  apparently  inseparably  connected  with  modem  in- 

*  From  Frank  Trac>'  Carlton,  Thf  History  and  Problems  of  Organised  Labor. 
D.  C.  Heath  &  Co.,  1911;  pp.  ;7S-2So. 


232 


READINGS  IN  AMERICAN  DEMOCRACY 


Forms  of 
labor  legis- 
lation. 


A  typical 
factory  act. 


dustry.  "The  fundamental  purpose  of  labor  legislation  is  the  con- 
servation of  the  human  resources  of  the  nation"  is  a  familiar  motto 
of  the  American  Association  for  Labor  Legislation.  .  . 

Labor  legislation  in  the  states  of  the  United  States  relates  to  a 
variety  of  different  subjects,  such  as  the  estabhshment  of  depart- 
ments of  factory  inspection,  limitation  of  the  hours  of  labor,  pro- 
hibition of  night  work  or  of  Sunday  labor,  the  exclusion  of  certain 
classes  of  wage  earners  from  certain  kinds  of  employment,  provisions 
for  the  frequent  payment  of  wages,  prohibition  of  truck  payment, 
guards  for  dangerous  machinery,  regulations  as  to  the  sanitary  con- 
ditions within  factories  and  workshops,  regulations  as  to  cleaning 
or  oiUng  machinery,  apprenticeship,  discrimination  against  union 
men  either  in  hiring  or  discharging  workers,  and  many  other  mat- 
ters touching  upon  the  health,  safety,  and  well-being  of  wage  earners. 
In  addition  many  regulations  have  been  passed  relating  specifi- 
cally to  mines  and  mine  workers. 

Every  state  and  territory  and  the  Federal  government  have 
passed  legislation  relating  to  labor.  The  Illinois  factory  law,  which 
went  into  effect  in  January,  1910,  is  an  excellent  example  of  a  fac- 
tory act.  The  chief  points  in  this  particular  piece  of  labor  legisla- 
tion may  be  summarized  as  follows:  —  (a)  All  machinery  must 
be  carefully  protected,  (b)  Set  screws  and  other  dangerous  pro- 
jections  must   be   countersunk   or   otherwise   guarded,   if   possible. 

(c)  Means    must    be    provided    for    quickly    stopping    machinery. 

(d)  Machinery  must  not  be  placed  closely  together;  adequate 
passageways  must  be  provided,  (e)  AH  elevators  and  openings 
in  the  floor  must  be  enclosed.  (/)  Premises  must  be  sanitary. 
Equal  temperatures  must  be  maintained;  and  suitable  seats  must 
be  provided  for  female  workers,  (g)  Adequate  and  sanitary  toilet 
facilities  must  be  provided  for  workers  of  both  sexes,  (h)  Food 
must  not  be  eaten  in  any  room  where  white  lead,  arsenic,  or  other 
poisonous  gases  are  present,  (i)  Sufficient  means  of  escape  in  case 
of  fire  must  be  provided  and  kept  free  from  obstruction,  (j)  Nox- 
ious fumes  and  gases  must  be  removed  as  far  as  is  practicable. 
(k)  No  employee  shall  be  allowed  to  operate  a  machine  with  which 
he  is  not  famihar.  (/)  The  employer  is  required  to  report  all  ac- 
cidents to  the  state  factory  inspector,  which  result  in  death.  .  .  . 


PROGRAM  OF  INDUSTRIAL  REFORM  233 

102.   The  practice  of  thrift  ^ 

Some  reformers  begin  their  discussion  of  the  problem  of  pov-   High  wages 
erty  by  condemning  the  payment  of  low  wages  to  certain  groups   j^g^-gsj^rily 
of  employees,  and  end  their  discussion  by  suggesting  or  demanding   mean  free- 
that  the  wages  of  these  groups  be  increased.    It  is  of  course  true  that   l^yg^t™"^ 
an  essential  part  of  any  sound  program  of  industrial  reform  is  con- 
cerned with  economical  methods  of  raising  the  wages  of  the  poorly 
paid  groups.    But  high  wages  do  not  necessarily  mean  freedom  from 
poverty,  for  it  may  be  that  the  individuals  receiving  a  substantial 
increase  in  wages  are  unable  to  utiHze  their  income  economically. 
Indeed,  poverty  can  never  be  eradicated  until  the  individual  is  ren- 
dered able  and  willing  to  spend  his  income  wisely.     Some  of  the 
essential  principles  of  thrift  are  pointed  out  in  the  following  selection 
by   Professor   Benjamin   R.    Andrews: 

Thrift  is  a  means  to  the  best  Ufe  for  individual  and  family  as  it  Nature  of 
insures  that  considered  use  of  resources  which  will  promote  well- 
being.  There  is  a  current  idea  that  the  thrifty  man  is  stingy  and 
penurious,  but  rightly  understood  thrift  means  inteUigence,  fore- 
thought and  plan  in  the  use  of  resources,  so  as  to  promote  personal 
well-being.  In  practice  thrift  calls  for  effective  functioning  on  the 
part  of  the  individual   in  the   following   economic  relations: 

1.  As  one  who  earns,  by  increasing  skill  or  output  so  as  to  enlarge   The  prob- 

,  lem  of 

money  mcome  or  its  equivalent.  ^^j^^jf^  ^as 

2.  As  one  who  spends,  by  studying  one's  present  needs  so  as  to   five  angles. 
secure  goods  and  services  bringing  the  greatest  possible  satisfaction 

at  the  least  possible  cost. 

3.  As  one  who  saves,  by  examining  one's  future  needs  so  as  to  set 
aside  funds  liberally  for  all  its  contingencies. 

4.  As  one  who  invests,  by  considering  the  placing  of  savings  so 
that  they  will  grow  by  interest  or  by  increase  of  value  so  that  princi- 
pal and  interest  will  be  secure  against  loss. 

5.  As  one  who  conserves  whatever  he  has,  by  considering  its 
wisest  use  so  as  to  secure  the  greatest  possible  satisfaction  from  it, 
by  avoiding  w^aste,  and  by  treating  what  is  bought  with  money  as 

1  From  the  American  Academy  of  Political  and  Social  Science,  Annals.  Vol. 
Lxxxvu.    Philadelphia,  January,  1920;  pp.  11-15- 


234 


READINGS  IN  AMERICAN  DEMOCRACY 


Suggestions 
for  effi- 
ciency in 
spending: 


The  written 
budget. 


The  intelli- 
gent direc- 
tion of 
spending. 


Thrift  in 
food  ex- 
penditure. 


Clothing 
costs. 


though  it  had  money's  value.  Thus  there  arises  a  fivefold  thrift 
problem  of  the  individual  and  family  as  regards  earning,  spending, 
saving,  investing,  and  conserving.  .  .  . 

Written  Budget  Plans.  .  .  .  Engel  stated  certain  economic  laws 
of  consumption,  the  more  important  of  which  are  that  the  smaller 
the  income  the  larger  the  proportion  of  it  which  must  go  for  food, 
and  that  as  income  increases  food  expenditure  relatively  decreases 
and  the  allowance  for  miscellaneous  culture  wants  increases.  A 
widely  quoted  American  standard  for  middle  class  incomes  is  "the 
ideal  budget"  of  the  late  Ellen  H.  Richards  which  allows  one-fourth 
of  the  income  for  food,  one-fifth  for  rent,  one-seventh  for  clothing, 
and  one-fourth  for  culture  wants  or  the   "higher  Ufe. "  .  .  . 

Written  accounts  of  expenditure,  at  least  during  periods  of  read- 
justment, are  desirable.  Needs  for  expenditure  should  have  criti- 
cal examination.  The  classical  division  of  wants  into  necessities, 
comforts  and  luxuries  gives  a  starting  point.  .  .  . 

Intelligent  direction  of  spending  .will  increase  its  efficiency.  This 
naturally  centers  in  the  housewife,  but  often  certain  responsibihties 
may  be  wisely  assigned  to  others.  ...  In  a  matter  like  the  purchase 
of  food,  clothing,  shelter  and  other  goods  in  the  market  with  which 
every  individual  has  Hfe-long  contacts,  it  is  astonishing  that  the 
general  level  of  intelligence  is  not  higher.  .  .  . 

In  food  expenditure,  thrift  requires  that  the  purposes  of  nutrition 
be  adequately  met,  including  the  growth  and  maintenance  of  the 
body  and  the  production  of  energy,  and  that  this  be  done  at  a  reason- 
able cost.  It  asks  such  questions  as:  ...  Are  necessary  mineral 
constituents  and  growth-promoting  vitamens  provided?  Is  variety 
of  diet  guaranteed  by  including  food  from  all  five  groups,  —  grain 
products,  fruits  and  vegetables,  meats,  sugars  and  fats?.  .  .  Do 
finicky  food  habits  add  to  cost?  Is  food  cost  reasonable?  Is  quantity 
buying  followed  where  practicable?  Are  stores  selected  for  economy 
as  well  as  convenience? 

Itt  clothing  costs,  thrift  promotes  economy  by  such  queries  as  these: 
Is  clothing  chosen  so  as  to  promote  health  and  secure  length  of 
service  as  well  as  "for  looks"?  Does  fashion  increase  clothing  costs 
beyond   reason?  .  .  . 

In  housing,  thrift  stands  for  adequate  provision  as  to  space,  light, 


PROGRAM  OF  INDUSTRIAL  REFORM  235 

air,  arrangement  of  rooms  for  ease  in  house-work  as  well  as  to  meet  Thrift  in 
the  personal  and  social  needs  of  the  family  group.    It  raises  such  ^o^^i^s 
questions  as:    Is  there  any  better  investment  than  owning  one's 
own  home?    Are  we  spending  unnecessarily  for  display  in  the  house? 

In  household  operating  expenses,  thrift  demands  adequate  heating,    and  in 
lighting,  water-supply  and  housekeeping  supplies.     It  justifies  hired   operating 
service  where  the  housewife  has  other  useful  employment  or  is  unable   expenses, 
to  do  all  the  work.     It  raises  such  questions  as:    Can  suppUes  be 
bought  cheaper  in  quantity?     Is  the  heating  and  Hghting  system 
efficient  and  economical?     Is  the  telephone  justified,  and  if  so,  is 
postage  a  cheaper  substitute  for  many  toll  calls?    Do  the  members 
of   the  household  cooperate  fuUy  in  reducing  the  burden  of  daily 
household   tasks    which    come    upon    the    housewife   or   her   hired 
substitute? 

In  culture  wants,  thrift  emphasizes  their  importance  as  compared   Thrift  in 

with  material  wants  and  asks  fuU  provision  for  education,  for  per-   culture 

^  wants. 
sonal  development  and  for  health,  and  reasonable  provision  for  phys- 
ical and  mental  recreation,  for  necessary  expenses  for  personal 
care  and  for  incidental  needs.  But  thrift  asks:  Are  large  personal 
indulgence  expenditures  justifiable?  Do  they  not  give  special  treat- 
ment for  one  or  more  members  of  the  family  as  compared  with  others? 
Is  special  musical  or  art  instruction  to  an  ungifted  person  wise? 
Should  recreation  expenditures  exceed  cvdtural  expenditures  of  the 
sort  which,  for  lack  of  a  better  term,  are  called  educational  and 
ethical?  .  .  . 


Questions  on  the  foregoing  Readings 

1.  Into  what  two  parts  does  Professor  Carver  divide  his  outline  of 

the  democratic  program  of  industrial  reform? 

2.  Outline  the  essential  features  of  the  first  part  of  this  program. 

3.  What  are  the  essential  features  of  the  second  part  of  this  program? 

4.  Define  justice. 

5.  By  what  three  means  might  unearned  wealth  be  redistributed? 

6.  To  what  tendency  in  taxation  does   Professor  Seligman  call  at- 

tention? 

7.  What  is  the  relation  of  this  tendency  to  income  tax  legislation? 

8.  What  does  Professor  Seligman  have  to  say  with  reference  to  a 

higher  tax  on  land,  especially  in  local  finance? 


236  READINGS  IN  AMERICAN  DEMOCRACY 

9.    What  is  his  opinion  of  the  single  tax? 

10.  Why  might  the  application  of  the  principle  of  justice  to  industrial 

problems  fail  to  improve  the  condition  of  all  of  the  poor? 

11.  What  is  the  importance  of  vocational  guidance  in  the  attack  upon 

low  wages? 

12.  What  occupations  are  covered  by  the  term  "  vocational"? 

13.  What  are  the  aims  of  vocational  guidance? 

14.  What  principles  should  govern  the  choice  of  a  vocation? 

15.  What,  according  to  Mr.  John  B.  Andrews,  is  the  condition  of  the 

labor  market  at  the  present  time? 

16.  What  remedy  does  he  suggest  for  this  condition? 

17.  Outline   the   functions   of   the  central  office,   as  embodied  in  the 

plan  for  a  national  system  of  employment  bureaus. 

18.  What  would  be  the  functions  of  the  proposed  local  labor  exchanges? 

19.  Why  is  labor  legislation  a  necessary  function  of  government? 

20.  What  is  the  legal  basis  for  labor  legislation? 

21.  Outline  some  forms  of  labor  legislation. 

22.  Explain  why  high  wages  do  not  necessarily  mean  freedom  from 

poverty. 

23.  What  are  the  five  phases  of  the  problem  of  thrift? 

24.  Outline  Professor  Andrews'  suggestions  with  reference  to  written 

budget  plans  and  written  accounts  of  expenditure. 

25.  Illustrate  the  principles  of  thrift  with  reference  to  food  expenditure, 

clothing  costs,  expenditure  for  house-room,  household  operating 
expenses,  and  culture  wants. 


PART  III— AMERICAN  SOCIAL  PROBLEMS 

CHAPTER   XVIII 
INDUSTRIAL   RELATIONS 

103.   The  extent  of  strikes  and  lockouts  ^ 

In  any  survey  of  the  actual  workings  of  modern  industry,  the   The  persist- 
most  casual  observer  mu^t  be  impressed  by  the  persistence  of  dis-   ^^'^^  ? .  "?.' 
agreements  between  labor  and  capital.     These  disagreements  take   agreements, 
different  forms,  and  are  of  varying  duration  and  significance.     Two 
of  the  most  serious  types  of  industrial  disturbances  are  strikes  and 
lockouts.    Complete  data  on  these  industrial  phenomena  are  lacking, 
but  for  a  number  of  years  the  United  States  Department  of  Labor 
has  kept  a  record  of  strikes  and  lockouts  in  this  country.    The  fol- 
lowing extract  from  a  report  of  the  Department  indicates  the  extent 
of  strikes  and  lockouts  in  the  years  1916,  191 7,   1918,  and  1919: 


Table  I.   Number  of  Strikes  and  Lockouts,  1916,  1917, 

T918,  AND  1919 


Year 

Total 

Year 

Total 

Strikes: 

1916 

3,681 
4,324 
3,232 
3,253 

Lockouts: 

1Q16 

108 

IQ17 

1917 

1918.    . 

T  ofi 

1918 

105 

T  '>  T 

IQIQ 

1919 

Strikes  and 

lockouts, 

1916-1919. 


Although  the  number  of  strikes  during  1919  was  not  appreciably 
larger  than  in  191 8  and  was  less  than  in  1916  or  1917,  the  number 

'  From  the  United  States  Department  of  Labor,  Bureau  of  Labor  Statistics, 
Monthly  Labor  Review.     Washington,  June,  1920;   pp.  200-204. 

237 


238 


READINGS  IN  AMERICAN  DEMOCRACY 


Number  of 
persons 
involved  in 
labor  dis- 
putes in 
the  years 
1916,  1917, 
1918, 


and  1919. 


Extent  of 
unionism 
among  the 
employees 
involved 
in  1919. 


Causes  of 
strikes  and 
lockouts, 
1916-1919. 


of  persons  on  strike  during  the  year  1919  was  greatly  in  excess  of 
the  number  on  strike  in  any  of  the  three  preceding  years,  due  to 
the  number  of  strikes  in  which  large  numbers  of  persons  were  involved. 
The  strike  in  which  the  largest  number  of  persons  was  involved  in 
1 916  was  the  men's  clothing  strike  in  New  York  City  in  December 
of  that  year,  involving  60,000  employees.  No  strike  in  1917  involved 
as  many  as  40,000  persons.  In  1918  the  strike  involving  the  largest 
number  of  persons  was  that  of  machinists  in  northern  New  Jersey 
in  July,  where  60,000  persons  struck. 

In  1919  there  were  nine  disturbances,  in  each  of  which  60,000 
or  more  persons  were  directly  concerned:  A  general  strike  in  Tacoma 
and  Seattle  in  February  in  sympathy  with  the  metal-trades  strikers, 
in  which  60,000  persons  were  involved;  65,000  employees  in  the 
Chicago  stockyards  struck  in  August;  100,000  longshoremen  along 
the  Atlantic  coast  struck  in  October;  100,000  employees  in  the  ship- 
yards of  New  York  City  and  vicinity  struck  in  October;  115,000 
members  of  the  building  trades  were  locked  out  in  Chicago  in  July; 
125,000  in  the  building  trades  in  New  York  struck  in  February; 
250,000  railroad  shop  workers  struck  in  August;  367,000  iron  and 
steel  workers  struck  in  September;  and  435,000  bituminous  coal 
miners  struck  in  November.  The  number  of  persons  concerned  in 
these  nine  strikes  and  lockouts  was  upward  of  1,600,000,  while 
the  total  number  of  persons  in  strikes  and  lockouts  during  19 19  was 
4,112,507.  ... 

In  1919  the  employees  were  connected  with  unions  in  1,811  strikes 
and  102  lockouts;  they  were  not  connected  with  unions  in  135  strikes 
and  I  lockout;  in  27  strikes  and  2  lockouts  they  were  not  so  con- 
nected at  the  time  of  striking,  but  organized  almost  immediately 
thereafter;  in  1,280  strikes  and  16  lockouts  the  relation  of  employees 
to  unions  was  not  reported.  .  .  . 

The  causes  of  strikes  and  lockouts  were  numerous.  Aside  from 
wages,  few  strikes  occurred  in  which  the  cause  was  confined  to  one 
matter  in  dispute.  The  principal  causes  are  shown  in  the  table 
foUomng: 


I 


INDUSTRIAL  RELATIONS  239 

Principal  Causes  of  Strikes  and  Lockouts  Beginning  in 
1916,  1917,  1918,  and  1919 


Matter  of  Dispute 


Increase  of  wages 

Decrease  of  wages 

Nonpay-ment  of  wages 

Increase  of  hours 

Decrease  of  hours 

Increase  of  wages  and  decrease  of  hours. 

Recognition  of  the  union 

Recognition  and  wages 

Recognition  and  hours 

Recognition,  wages,  and  hours 

General  conditions 

Conditions  and  wages 

Conditions  and  hours 

Conditions,  wages,  and  hours 

Conditions  and  recognition 

Discharge  of  foreman  demanded 

Discharge  of  employees 

Emplo>'ment  of  nonunion  men 

In  regard  to  the  agreement 

New  agreement 

Sympathy 

Jurisdiction 

Miscellaneous 

Not  reported 

Total 


Strikes 


1916 


1,290 

33 

13 

3 

III 

479 

344 

122 

22 

68 

5Q 
S6 

3 

25 


17 

122 

70 

38 

37 

32 

10 

120 

598 


3,681 


1917 


I.SS4 

34 

17 

18 

127 

374 

275 

149 

27 

56 

100 

70 

17 

26 

13 
37 
204 
76 
80 
2 

70 

21 

183 

774 


1918 


4,324 


1,378 

34 

31 

6 

79 

251 
188 

95 
18 
66 

59 

52 
2 
8 
7 

54 
138 

62 

42 

4 

34 

l6 

172 

436 


1919 


999 
80 

9 

8 

106 

554 
366 
127 

19 

178 

65 

54 

5 

37 

14 

15 

141 


33 

36 

100 

15 
91 

201 


Lockouts 


1916 


1 1 

2 

4 
2 
2 
22 
2 
I 
5 


7 

33 


3,232 


3,253 


108 


1917 


5 

4 

39 

5 
I 


5 

30 

126 


1918 


14 

2 


2 
35 


1919 


24 
3 


8 
9 
31 
5 
I 

7 


9 
35 
los  121 


I 

IS 
12 


240 


READINGS  IN  AMERICAN  DEMOCRACY 


Mediation, 
conciliation 
and  arbitra- 
tion. 


The  milk 
wagon  driv- 
ers' strike, 
New  York, 
November  i, 
1921. 


Territory 
and  popula- 
tion affected. 


It  is 

claimed 
that  the 
strikers  had 
rejected  the 
offer  of  con- 
ciliation. 


104.   Failure  of  voluntary  arbitration:    an  example  ^ 

Disputes  between  labor  and  capital  may  be  settled  in  a  num- 
ber of  ways.  Very  frequently,  the  dispute  terminates  in  a  strike 
or  lockout,  in  which  case  the  two  parties  attempt  to  settle  their 
difficulties  in  the  open  conflict  of  industrial  warfare.  The  dangers 
and  injuries  which  often  accompany  industrial  warfare  have  led  many 
states  to  enact  laws  providing  for  a  varying  degree  of  industrial 
mediation,  conciliation  and  arbitration.  In  practically  all  of  the 
legislating  states,  however,  arbitration  is  purely  voluntary,  and  often 
fails  because  either  labor  or  capital,  or  both,  wiU  not  consent  to 
arbitration.  An  excellent  example  of  the  failure  of  voluntary  arbi- 
tration is  the  strike  of  the  milk  wagon  drivers  in  New  York  in 
November,  192 1.  The  following  extracts  concerning  this  strike  are 
from  the  New  York  Times: 

(November  i,  192 1.)  Sweeping  aside  all  efforts  at  Federal  and 
municipal  intervention,  more  than  12,000  milk  wagon  drivers  and 
allied  workers  voted  overwhelmingly  at  a  wild  and  uproarious  mass 
meeting  in  Madison  Square  Garden  last  night  to  strike.  The  walk- 
out went  into  effect  at  midnight. 

The  New  York  Milk  Conference  Board,  representing  the  distrib- 
utors, immediately  answered  that  they  accepted  the  challenge  of 
the  unions  and  would  run  an  "open  shop."  .  .  . 

The  strike  order  which  was  issued  to  the  men  includes  all  milk  dis- 
tributors of  New  York  City,  Jersey  City,  Hoboken,  Newark,  .  .  . 
and  as  far  north  as  the  Massachusetts  State  hne,  covering  a  territory 
which  has  within  its  Hmits  a  population  of  more  than  10,000,000 
persons.  ... 

I.  Elkin  Nathans,  Secretary  of  the  Milk  Conference  Board,  said 
that  the  [grievances  between  the  Board  and  the  employees  had  been 
under  consideration]  by  Charles  Bendheim,  Concihation  Commissioner 
of  the  U.S.  Department  of  Labor,  but  the  "union  delegates  wouldn't 
listen  to  him.  I  think  [the  unions]  should  have  at  least  left  the  way 
open  to  renew  the  negotiations, "  [said  Mr.  Nathans.]  .  .  . 

(November  2,  1921.)    Through  the  efforts  of  Mayor  John  F.  Hylan, 
the  milk  distributors  and  representatives  of  the  milk  drivers'  unions 
1  From  the  New  York  Times,  issues  of  November  i,  2,  3  and  4,  ig2r. 


INDUSTRIAL  RELATIONS 


241 


will  meet  in  conference  to-day  in  an  effort  to  adjust  their 
differences.  .  .  . 

The  conference  between  the  union  leaders  and  the  distributors 
yesterday  afternoon  was  called  by  the  Mayor  in  a  telegram  in  which 
he  said:  "From  the  point  of  view  of  the  pubHc,  the  situation  that 
arises  because  of  this  dispute  between  you  is  intolerable.  What- 
ever the  merits  may  be,  and  whichever  is  in  the  right,  the  contro- 
versy should  be  adjusted  without  discomfort  or  inconvenience  to 
the  public  and  without  jeopardy  to  the  health  and  lives  of  the  babies, 
children  and  invalids  in  the  community. "... 

(November  3,  1921.)  In  a  letter  to  Dr.  Royal  S.  Copeland, 
Health  Commissioner,  the  milk  distributors  said  that  they  could 
not  accept  arbitration,  beheving  that  the  situation  called  for  per- 
manent settlement  and  must  be  fought  out.  .  .  . 

Aroused  by  the  failure  of  the  distributors  to  make  a  settlement 
possible.  Commissioner  Copeland  came  out  of  the  office  in  a  rush. 
"The  responsibility  now  rests  on  the  distributors,"  he  said.  "They 
want  to  make  an  open  shop  fight  on  an  issue  that  means  life  and 
death  to   the  inhabitants  of  this   community. "... 

After  a  conference  with  his  committeemen,  [the  spokesman  of 
the  unions]  announced:  "Our  committee  is  agreeable  to  recommend 
at  the  Madison  Square  Garden  meeting  to-night  that  the  men  return 
to  work  under  the  old  agreement  while  a  board  of  arbitration  takes 
up  the  question  of  wages." 

Asked  what  he  had  to  say  to  that  by  Dr.  Copeland,  Mr.  Nathans 
demanded  the  union's  promise  in  writing.  The  Health  Commissioner 
said  that  that  could  be  arranged,  that  the  unions  had  made  a  "fair 
proposition"  and  a  "splendid  suggestion,"  and  called  upon  the 
two  Concihation  Commissioners,  Charles  Bendhcim  and  Owen  Brown, 
who  were  present,  and  they  agreed  that  arljilration  was  the  best  plan. 

Mr.  Nathans  said  that  he  would  suggest  it  to  the  distributors, 
but  they  did  not  want  to  "wrangle  for  six  or  eight  months,"  asking 
that  a  definite  period  be  stated  for  the  duration  of  the  arbitration 
proceedings.  .  .  .  Commissioner  Copeland,  warning  that  arguments 
might  spoil  the  "pleasant  afternoon,"  suddenly  adjourned  the  meet- 
ing and  had  the  unions  prepare  in  writing  their  proposal  to  return 
to  work.  .  .  . 


The  mayor 
of  New 
York. 

attempts  to 
settle  the 
strike,  be- 
cause of  the 
social  ne- 
cessity of 
milk. 


The  em- 
ployers re- 
ject the 
ofTer  of 
arbitration, 

and  are  de- 
nounced by 
the  Health 
Commis- 
sioner. 


The  strikers 

favor 
arbitration, 


but  the  rep- 
resentative 
of  the  em- 
ployers 


delays  ac- 
tion on  this 
suggestion. 


242 


READINGS  IN  AMERICAN  DEMOCRACY 


The  result, 
as  shown 
by  the 
headlines  of 
the  New 
York  Times, 
November  4, 
1921. 


(November  4,  1921.) 
STRIKERS  RIOTING  ALL  OVER  THE   CITY 

DUMP  THOUSANDS  OF   GALLONS  OF  MILK 
HYLAN  THREATENS  TO  SEIZE  PLANTS 


BRICKS    RAIN     ON     TRUCKS. 


Drivers  and  dealers  are  beaten.    Policemen  attacked,  wagons  stolen. 


One  dying,  two  badly  hurt. 


People  with  pails  are  turned  back  from  station. 
Small  storekeepers  cowed. 


40  arrests,  four  to  jail. 


Courts  score  disregard  for  Public, 
Threaten  severe  sentences  in  day  of  violence. 


The  neces- 
sity of  legal 
responsibil- 
ity in 
industrial 
relations. 


A  proposed 
law  on  this 
subject. 


105.   Legal  responsibility  in  industrial  relations  ^ 

In  industrial  relations,  as  in  other  phases  of  life,  experience  has 
shov^n  that  the  combination  of  great  power  and  lack  of  responsibility 
is  likely  to  lead  to  an  abuse  of  power.  Among  both  employees  and 
employers  organization  is  increasingly  close  and  strong,  and  though 
this  is  in  many  ways  desirable,  this  development  increases  the  neces- 
sity of  protecting  the  community  against  the  aggressions  of  either 
labor  or  capital.  Authorities  differ  as  to  the  desirabihty  or  even 
possibility  of  so  applying  ordinary  corporation  law  as  to  render  trade 
unions  and  employers'  associations  legally  responsible  for  their  acts. 
It  is  beUeved  by  some,  however,  that  it  is  possible  to  estabUsh  legal 
responsibiUty  by  a  special  form  of  incorporation.  In  the  following 
passage  Mr.  Forrest  R.  Black  outUnes  a  proposed  law  which  would 
estabUsh  such  responsibihty: 

I.  Such  a  law  ought  to  recognize  the  peculiar  nature  of  the  trade 
union  as  distinct  from  the  social  club,  on  the  one  hand,  and  from  an 
ordinary  business  corporation  on  the  other.  .  .  . 

1  From  Forrest  R.  Black,  Should  Trade  Unions  and  Employers^  Associations 
Be  Made  Legally  Responsible?  National  Industrial  Conference  Board,  Boston, 
June,  1920;  Dp.  33-35- 


INDUSTRIAL  RELATIONS  243 

II.   The  law  should  expressly  recognize  the  "identity  of  interest"   Necessity 
between  the  trade  union  as  such  and  its  members.    This  would  give   "[^f^g^^^e 
efficiency  to  their  contracts  with  employers.    It  should  be  so  framed   "identity  of 
that  a  breach  of  a  joint  contract  of  employment  would  give  the  union   ^^^^^^^^^  ^ 
a  right  of  action  for  the  damages  sustained  by  its  members  through   trade  union 
resulting  loss  of  wages  or  unemployment.     This  would  virtually  in-   ^jM^^^.^ 
jtroduce  arbitration  by  the  courts  in  labor   disputes,   by  creating 
igreater  mutual  confidence  in  the  stabihty  of  each  other;   and  thus, 
[to  a  certain  extent,  superseding  the  strike,  which  is  at  present  practi- 
Ically  the  only  remedy  against  a  violation  of  the  labor  contract  by 
the  employer.  ... 

j    III.   The    statute    should    specifically    recognize    the    distinction   Combative 
between  the  combative  and  the  charitable  functions  of  a  trade  union,    ^^^^it^ble 
and  the  funds  connected  \yith  the  latter  should  be  declared  immune   functions  of 
from  attachment  in  a  damage  suit.    Protected  by  such  a  limitation,      ^  ^^°^- 
iif  the  unions  are  acting  in  good  faith,  we  see  no  reason  why  they 
should  not  be  wilhng  to  furnish  as  good  security  as  they  now  demand 
jof  the  employer. 

rV.   A  Federal  labor  commission  should  be  created  to  supervise   A  Federal 
labor  organizations  and  employers'  associations,  and  among  other   ^.Q^isgion 
things,  to  see  to  it  that  the  unions  do  not  use  the  benefit  function   proposed, 
jas  a  cloak  to  protect  the  funds  to  be  used  for  combative  purposes.  .  .  . 

VT.  The  statute  must  distinguish  between  the  merchant  function 
'and  the  employer  function  of  those  organizations  that  are  loosely 
called  "employers'  associations." 

VII.  Incorporation  should  be  volimtary.     The  experience  of  New   Incorpora- 
IZealand  and  AustraUa  shows  that  such  a  system,  although  voluntary,   [,'°".qiJ|j" 
|would  soon  be  adopted  by  the  great  majority  of  trade  unions  and   tary. 
employers'  associations.     The  objections  to  incorporation,  as  such, 

'on  the  part  of  trade  unions,  would  be  overcome  by  the  attending 
privileges  offered,  and  due  to  the  fact  that  employers  are  even  now 
financially  responsible,  employers'  associations  would  accept  it  [[i.e. 
incorporation]  because  of  the  greater  leverage  it  would  give  them 
jover  organized  labor,  and  because  of  the  stimulus  that  it  would 
give  to  the  principle  of  arbitration. 

VIII.  The  foregoing  system  should  be  put  into  effect  by  national 
and  state  legislation.     Lack  of  uniformity  in  state  statutes  would 


Equal  treat- 
ment of 
trade  unions 
and  em- 
ployers' 
associations. 

Conclusion. 


244 


READINGS  IN  AMERICAN  DEMOCRACY 


fl 


no  doubt  be  a  serious  handicap  to  the  success  of  the  plan,  but  this 
is  one  of  the  defects  which  is  inherent  in  our  system  of  government. 
At  least,  the  proposed  plan,  where  adopted,  would  be  preferable 
to  the  present  system.  - 

IX.  Finally  trade  unions  must  be  subject  to  the  same  rules 
of  legal  ability  as  employers'  associations,  in  the  strict  use  of  that 
term.  .  .  .  The  public  welfare  demands  that  both  trade  unions  and 
employers'  associations  stand  upon  a  plane  of  equality  before  the 
law,  —  and  this  the  state  can   estabhsh. 

It  seems  that  the  solution  lies  in  an  extension  of  the  Roosevelt 
Trust  Policy  of  "concentration  and  control."  We  must  distinguish 
between  good  and  bad  unions,  between  good  and  bad  employers'  as- 
sociations. The  motive  of  those  who  urge  that  trade  unions  and  em- 
ployers' associations  be  held  strictly  responsible  for  their  contracts 
and  the  acts  of  their  agents,  is  not  to  attack  the  institutions  them- 
selves, —  but  their  abuses;  the  purpose  is  not  to  cripple  the  con- 
tending factions,  but  to  protect  the  great  consuming  public  of  which 
they  are  only  a  part. 


Backward- 
ness of 
compulsory 
arbitration 
in  the 
United 
States. 


106.   The  Kansas  Court  of  Industrial  Relations  ^ 

The  Umitations  of  conciliation,  mediation  and  voluntary  arbitra- 
tion as  methods  of  settling  industrial  disputes  have  given  rise  to  the 
demand  for  compulsory  arbitration.  Those  favoring  compulsory 
arbitration  are  particularly  insistent  that  this  device  be  applied  to 
industrial  disputes  which  threaten  to  deprive  the  pubHc  of  such 
vital  necessities  as  coal,  milk,  etc.  Compulsory  arbitration  is  weU 
known  in  Australasia,  but  has  not  been  regarded  with  wide  favor 
in  the  United  States.  Nevertheless,  an  important  step  toward  safe- 
guarding the  right  of  the  public  was  taken  when  in  January,  1920, 
the  Legislature  of  Kansas  established  a  Court  of  Industrial  Relations. 
The  chief  aim  of  the  court  is  not  to  arbitrate  between  labor  and  capi- 
tal, as  such,  but  to  represent  the  pubHc  interest  in  industry.  The 
following  description  of  the  court  is  from  the  Monthly  La-bor  Review: 

The  action  of  the  Legislature  of  Kansas  of  this  year  [1920]  in 


•  From  the  United  States  Department  of  Labor,  Bureau  of  Labor  Statistics, 
Monthly  Labor  Review.    Washington,  March,  1920;  pp.  214-215. 


INDUSTRIAL   RELATIONS  245 

establishing  a  special  tribunal  of  industrial  relations  has  attracted  The  Kansas 
widespread  attention.    The  court  consists  of  three  judges  appointed    j  J"^.-i 
by  the  governor,  with  the  advice  and  consent  of  the  senate,  for  three-   Relations, 
year  terms,  and  was  immediately   (Feb.    2)   organized.   ...   Its   '^^°' 
principal  powers,  from  the  standpoint  of  immediate  interest,  relate   Chief 
to  the  regulation  of  designated  classes  of  employments,  industries,   Powers. 
etc.,  "declared  to  be  affected  with  a  public  interest  and  therefore 
subject  to  supervision  by  the  state. "     Included  are  the  manufact- 
uring of  food  products  and  clothing,  and  processes  connected  there- 
with;   the  mining  or   production  of  fuel;     transportation,   and  all 
public  utilities  and  common  carriers  as  defined  by  existing  statutes 
of  the  state. 

The  court  has  power  to  make  investigations,  serve  process,  take  Further 
testimony,  and  adopt  rules  and  regulations  to  govern  its  own  pro-  Powers, 
ceedings.  Appeal  Ues  to  the  supreme  court  from  its  findings.  The 
pubhc  welfare  is  declared  to  require  continuity  and  efficiency  in  the 
operation  of  the  industries,  etc.,  named;  the  willful  hindering,  delay, 
limiting  or  suspension  of  such  operations  are  therefore  declared  to 
be  contrary  to  the  purpose  of  the  act. 

The  court  may  act  on  its  own  initiative,  or  upon  the  complaint   How  the 

lof  either  party  to  a  controversy,  or  of  ten  citizen  taxpayers  of  the   ?°^^  *?  *^* 
I  ^       -^  -^  in  motion. 

affected  community,  or  of  the  attorney- general  of  the  state.  In- 
vestigation may  extend  to  the  conditions  surrounding  the  workers, 
jtheir  wages,  returns  to  capital,  the  rights  and  welfare  of  the  public,  — 
"and  all  other  matters  affecting  the  conduct  of  said  industries, 
^employments,  pubhc  utiUties,  or  common  carriers. " 
1    The  court  is  authori2ed  to  order  any  changes  necessary  in  the   Authority 

Imatter  of  working  and  living  conditions,  hours  of  labor,  rules  and   "^^"^  respect 
'  °  °  '  to  working 

practices,  and  a  reasonable  minimum  wage  or  standard  of  w-ages.    and  living 
Appeal  may  be  taken  within  10  days  to  the  supreme  court.    If  after   con°'tions. 
60  days'  compUance  the  order  is  found  to  be  unjust,  unreasonable, 
or  impracticable,  the  aggrieved  party  may  apply  for  a  modification, 
land  a  hearing  shaU  thereupon  be  had,  and  the  court  of  industry  may 
modify  its  orders  for  cause  shown. 

Enforcement  is  by  process  issuing   from  the  supreme   court  on    Enforcement 
proceedings  by  the  industrial  court.     Persons  wilfully  violating  the   °  ,        ,   , 
provisions  of  the  act,  or  any  vaUd  order  of  the  court,  are  Uablc  to   court. 


246 


READINGS  IN  AMERICAN  DEMOCRACY 


X'iolence 
and  other 
forms  of 
lawlessness. 


Recognition 
of  collective 
bargaining. 


Conclusion. 


fine  not  exceeding  Sioo  or  imprisonment  not  exceeding  one  year, 
or  both.  OiScers  of  corporations  or  of  labor  unions  who  use  their 
official  positions  ^vilfully  to  influence  or  compel  violations  are  guilty 
of  a  felony  and  may  be  punished,  upon  conviction  thereof,  by  a  fine 
not  exceeding  $5,000,  or  imprisonment  at  hard  labor  for  not  ex- 
ceeding two  years,  or  both.  In  case  production  or  operation  is  sus- 
pended, the  court  may  take  proceedings  for  the  talking  over  and 
operation  of  the  industries  or  work  affected.  In  any  case  a  fair 
wage  is  to  be  paid  the  workers  and  a  fair  return  allowed  the  owners. 

It  is  an  offense  to  do  or  perform  any  forbidden  act,  or  fail  or  refuse 
to  perform  any  act  enjoined  or  directed  by  the  court,  acting  either 
singly  or  in  confederation  with  others;  or  to  induce  or  intimidate 
any  employer  or  worker  to  violate  the  orders  of  the  court  whether 
negatively  or  positively.  Picketing,  threats,  abuse,  or  other  forms 
of  intimidation  are  unlawful  in  connection  with  the  employments, 
industries,  etc.,  governed  by  the  act. 

Unions  of  workers  are  recognized,  as  is  the  right  of  collective 
bargaining.  Individual  workers  are  guaranteed  freedom  of  action 
in  making  or  terminating  contracts,  but  it  is  unlawful  for  individuals 
to  conspire  with  other  persons  to  quit  employment  for  the  purpose 
of  hindering,  delaying,  or  interfering  with  the  operation  of  industries 
covered  by  the  act.  Employees  testifying  as  witnesses  or  otherwise 
active  in  securing  the  attention  or  action  of  the  court  may  not  be 
discharged  or  discriminated  against  because  of  such  action. 

This  is  the  most  comprehensive  attempt  yet  made  to  protect 
the  public  in  cases  of  industrial  disputes  hkely  to  affect  its 
interests.  ... 


Increasing 
number  of 
plans  for 
industrial 
peace. 


107.  Proposed  principles  of  industrial  relations  ^ 
The  growing  desire  to  decrease  the  antagonisms  between  labor 
and  capital  has  led  to  numerous  programs  of  industrial  procedure. 
Some  of  these  programs  or  proposals  have  -frankly  favored  the 
interests  of  the  laborers,  while  others  have  tended  to  favor  the 
employers.  Often  the  interests  of  the  public  at  large  have  been  in- 
adequately represented  in  these  so-called  plans  for  industrial  peace. 

•  From  the  Chamber  of  Commerce  of  the  United  States,  "A  Labor  Program  by 
Business."    Printed  In  The  Nation's  Business,  April,  1919;  p.  13. 


INDUSTRIAL  RELATIONS  247 

Occasionally,  a  program  is  put  forward  which  sincerely  attempts 
to  do  justice,  not  only  to  the  interests  of  labor  and  of  capital,  but 
of  the  pubHc  as  \vell.  An  example  of  this  last-named  type  of  program 
is  the  "Labor  Program  by  Business,"  drawn  up  by  the  Chamber 
of  Commerce  of  the  United  States  in  1919.    The  program  follows: 

Blind  leaders  of  the  blind  persist  in  deceiving  both  parties  to  the  The  Cham- 
readjustment  in  industrial  relations.  Bf 

Commerce 

The  all-important    question   is  whether    the  dominant  Voice  in   of  the 

labor  and  in  the  interest  of  the  employer  shall  tend  to  emphasize   st^t^^s^for 

the  existing  differences  in  mihtant  terms  that  will  ultimately  pro-   mulates 

voke  the  behef  that  alleged  rights  must  be  battled  for;   or  whether  ^*^!'^«;'^"      . 

'  pnnciplcs  01 

the  wiser  group,  knowing  that  the  industrial  program  of  the  nation   industrial 
is  not  in  reahty  a  mihtant  program  but  one  of  cooperation,  shall   '■'='^^'"'^*' 
gain  the  ascendency  and  throttle  the  "red"  tendencies  of  which  the 
situation  is  possessed. 

It  was  in  response  to  the  demand  for  announcing  a  program  of 
cooperation  that  the  Chamber  of  Commerce  of  the  United  States 
undertook  the  study  of  primary  principles  of  such  a  program  and 
started  with  this  progress  step  by  step  until  the  basis  of  at  least  a 
really  wise  and  workable  plan  could  be  evolved. 

For  several  years  the  National  Chamber  has  had  committees 
studying  questions  on  industrial  relations.  The  latest  committee 
was  appointed  last  December  and  having  advantage  of  the  study 
over  discoveries  of  earher  committees,  it  has  formulated  a  state- 
ment of  several  principles  to  be  follow^ed  in  the  United  States.  .  .  . 

The  principles  formulated  by  this  committee  are  to  be  placed 
before  the  1 100  commercial  and  trade  organizations  in  the  Chamber's 
membership  for  their  consideration.  The  principles  wh'ch  will  thus 
be  submitted  are: 

I.  Industrial  enterprise,  as  a  source  of  livelihood  for  both  employer   which  it  be 
and  employee,  should  be  so  conducted  that  due  consideration  is  ^^^^^  ^^^ 
given  to  the  situation  of  aU  persons  dependent  upon  it.  guard  the 

II.  The  public  interest   requires  adjustment  of  industrial   rela-   -^"prcst^ 
tions  by  peaceftol  methods. 

III.  Regularity  and  continuity  of  emplo>Tnent  should  be  sought 
to  the  fullest  extent  possible  and  constitute  a  responsibihty  rest- 
ing alike  upon  employers,  wage  earners  and  the  public. 


248 


READINGS  IN  AMERICAN  DEMOCIL\CY 


further  the 
interests  of 
both  labor 
and  capital, 


and  increase 
the  efl5- 
cienc>'  of 
the  produc- 
tive mech- 
anism. 


IV.  The  right  of  workers  to  organize  is  as  clearly  recognized  as 
that  of  any  other  class  or  part  of  the  community. 

\'.  Industrial  harmony  and  prosperity  will  be  most  effectually 
promoted  by  adequate  representation  of  the  parties  in  interest. 
E.xisting  forms  of  representation  should  be  carefully  studied  and 
availed  of  in  so  far  as  they  may  be  found  to  have  merit  and  are 
adaptable  to  the  pecuhar  conditions  in  the  various  industries. 

\1.  \\'henever  agreements  are  made  with  respect  to  industrial 
relations  they  should  be  faithfully  observed. 

MI.  Such  agreements  should  contain  provision  for  prompt  and 
final  interpretation  in  the  event  of  controversy  regarding  meaning 
or  application. 

VTU.  Wages  should  be  adjusted  wath  due  regard  to  the  pur- 
chasing power  of  the  wage,  and  to  the  right  of  every  man  to  an 
opportunity  to  earn  a  hving  at  fair  wages,  to  reasonable  hours  of 
work,  and  working  conditions,  to  a  decent  home,  and  to  the  enjoy- 
ment of  proper  social  conditions. 

IX.  Fixing  of  a  basic  day  as  a  device  for  increasing  compensation 
is  a  subterfuge  that  should  be  condemned. 

X.  Efficient  production  in  conjunction  with  adequate  wages  is 
essential  to  successful  industry.  Arbitrary  restriction  on  output 
below  reasonable  standards  is  harmful  to  the  interests  of  wage 
earners,  employers,  and  the  public  and  should  not  be  permitted.  In- 
dustry, efiiciency  and  initiative,  wherever  found,  should  be  encour- 
aged and  adequately  rewarded,  while  indolence  and  indifference 
shotild  be  condemned. 

XI.  Consideration  of  reduction  in  wages  should  not  be  reached 
until  possibihty  of  reduction  of  costs  in  all  other  directions  has  been 
exhausted. 

XII.  Administration  of  employment  and  management  of  labor 
should  be  recognized  as  a  distinct  and  important  function  of  manage- 
ment and  accorded  its  proper  responsibihty  in  administration  organ- 
ization. 

XIII.  A  system  of  national  employment  offices,  with  due  provi- 
sion for  cooperation  with  existing  state  and  municipal  systems, 
can  be  made,  under  efhcient  management  and  if  conducted  with 
due  regard  to  the  equal  interests  of  employers  and  employees  in  its 


INDUSTRIAL   RELATIONS  249 

proper  administration,  a  most  helpful  agency,  but  only  if  all  appoint- 
ments are  made  strictly  subject  to  the  Civil  Service  Law  and  rules. 
Policies  governing  the  conduct  of  a  national  system  of  employment 
offices  should  be  determined  in  conjunction  with  advisory  boards,  — 
national,  state  and  local,  —  equally  representative  of  employers  and 
employees. 


108.   The  promise  of  employee  representation  ' 

The  plans  proposed  for  the  settlement  of  industrial  disputes  are  There  is 

numerous,  and  though  many  of  them  have  desirable  points  and  work  P''""^ "'>'  "•* 

_  _  _  ^  simple  rcm- 

well  in  particular  situations,  no  one  is  generally  satisfactory.     It  edy  for 


industrial 
warfare. 


is  possible  that  we  shall  never  be  able  to  rely  wholly  upon  any  one 
method  or  principle,  nevertheless  there  is  a  growing  number  of 
students  who  beUeve  that  a  proper  application  of  what  is  called 
"employee  representation"  promises  greatly  to  increase  industrial 
good-will.  The  nature  and  scope  of  this  device  are  described  in  the 
following  extract  from  the  Report  of  the  Industrial  Conference 
called  by  the  President "of  the  United  States  in  December,  1919: 

Employee  representation  has  been  discussed  under  different  names   Forms  of 
and  forms,  such  as  shop  committees,  shop  councils,  works  councils,   ^^^esenta- 
representative  government  in  industry  and  others.     But  represen-   tion. 
tation  is  a  definite  principle  rather  than  a  form.     The  Conference, 
therefore,  prefers  the  generic  term  "employee  representation.  "... 

Employee  representation  organizes  the  relations  of  employer  and  Its  nature 
employee  so  that  they  regularly  come  together  to  deal  with  common 
interests.  It  is  operating  successfully  under  union  agreements  in 
organized  shops.  It  is  operating  in  non-union  shops,  and  it  is  operat- 
ing in  shops  where  union  and  non-union  men  work  side  by  side. 
In  plants  working  under  union  agreement,  it  adds  to  collective  bar- 
gaining an  agency  of  cooperation  within  the  plant.  It  is  itself  an 
agency  of  collective  bargaining  and  cooperation  where  union  agree- 
ments do  not  obtain. 

It  is  idle  to  deny  the  existence  of  conflicting  interests  between 
employers  and  employees.     But  there  are  w^de  areas  of  activity 

1  From  the  Industrial  Conference  called  by  the  President,  Report.    March  6, 
iQ2o;  pp.  9-1 1. 


and  extent. 


250 


READINGS  IN  AMERICAN  DEMOCRACY 


Importance 
of  the  rep- 
resentative 
principle  in 
industry. 


Opposition 
to  employee 
representa- 
tion 


is  based 
upon  a  mis- 
conception. 


Employee 
representa- 
tion not  in- 
compatible 
with  trade 
unionism. 


in  which  their  interests  coincide.  It  is  the  part  of  statesmanship  to 
organize  identity  of  interest  where  it  exists  in  order  to  reduce  the 
area  of  conflict.  The  representative  principle  is  needed  to  make 
effective  the  employee's  interest  in  production,  as  well  as  in  wages 
and  working  conditions.  It  is  likewise  needed  to  make  more  effective 
the  employer's  interest  in  the  human  element  in  industry. 

The  idea  of  employee  representation  has  aroused  opposition  from 
two  sources.  On  the  one  hand,  in  plants  too  large  for  direct  personal 
contact,  employers  who  still  adhere  to  the  theory  that  labor  is  a 
commodity,  hold  off  from  any  form  of  cooperation  with  employees. 
This  view  is  steadily  disappearing  and  will,  it  is  hoped,  wholly  dis- 
appear. On  the  other  hand,  a  number  of  trade  union  leaders  regard 
shop  representation  as  a  subtle  weapon  directed  against  the  union. 
This  thought  is  apparently  based  on  the  fear  that  it  may  be  used 
by  some  employers  to  undermine  the  unions.  Conceived  in  that 
spirit  no  plan  can  be  a  lasting  agency  of  industrial  peace. 

But  occasional  misuse  of  employee  representation  and  the  conse- 
quent hesitancy  of  organized  labor  to  endorse  it  officially,  are  based 
on  a  misconception  of  the  possible  and  desfrable  relations  between 
the  union  and  the  shop  committee.  This  relation  is  complementary, 
and  not  a  mutually  exclusive  one.  In  many  plants  the  trade  union 
and  the  shop  committee  are  both  functioning  harmoniously.  .  .  . 

The  union  has  had  its  greatest  success  in  dealing  with  basic  work- 
ing conditions,  and  with  the  general  level  of  wages  in  organized 
and  partially  organized  industries  and  crafts.  It  has  also  indirectly 
exerted  an  influence  on  standards  in  unorganized  trades.  There 
is  no  reason  to  suppose  that  in  the  future  this  influence  will  not 
continue. 

Local  problems,  however,  fall  naturally  within  the  province  of 
shop  committees.  No  organization  covering  the  whole  trade  and 
unfamihar  with  special  local  conditions  and  the  questions  that  come 
up  from  day  to  day,  is  by  itself  in  a  position  to  deal  with  these  ques- 
tions adequately,  or  to  enKst  the  cooperation  of  employer  and  em- 
ployee in  methods  to  improve  production  and  to  reduce  strain.  .  .  . 

The  existence  of  employee  representation  in  plants  operating 
under  union  agreement  does  not  necessarily  reduce  the  scope  of 
the  union  representative's  work.     But  matters  are  more  likely  to 


INDUSTRIAL  RELATIONS  251 

come  to  him  as  questions  of  the  application  of  an  agreement 
rather  than  as  mere  grievances.  In  other  words  he  has  greater 
opportunity  for  service  in  negotiation  of  an  essentially  conciliatory 
nature.  .  .  . 

Employee  representation  offers  no  royal  road  to  industrial  peace.    Limits  of 
No  employer  should  suppose  that  merely  by  installing  some  system   ^""P'oycc 
of  shop  representation  he  can  be  assured,  without  continued  effort,   tion. 
of  harmony  and  increased  production.  .  .  .  The   development  and 
maintenance  of   right    relations     between   employer   and  employee 
require  more  than  mere  organization.     Intelligent  and  wise  admin- 
istration is  needed  of  all  those  problems  of  production  that  directly 
touch   the   employee.  .  .  .  The  eUmination   of    human    friction   is, 
even  from  the  point  of  view  of  increased  production,  at  least  no 
less  important  than  the  eUmination   of  waste  in  materials,  or  in 
mechanical   power.  .  .  . 


Questions  on  the  foregoing  Readings 

1.  What  are  two  of  the  most  serious  types  of  industrial  disturbances? 

2.  Compaie  the  number  of  strikes   in  the  United  States  during  the 

years  1916,   1917,  1918  and   19 19. 

3.  Compare  the  number  of  lockouts   during  the  same  years. 

4.  What  was   the  total   number  of    persons  involved  in  strikes   and 

lockouts  during  the  year  19 19? 

5.  Name  some  of  the  more  important  causes  of  strikes  and  lockouts. 

6.  Why  is  voluntary  arbitration  often  a   failure? 

7.  Illustrate   the   limits   of   voluntary   arbitration   with   reference   to 

the  strike  of  the  milk  wagon  drivers  in  New  York  in  192 1. 

8.  Why  does  the  question  arise  of  making  trade  unions  and  employers' 

associations  legally  responsible  for   their  acts? 

9.  Outline  the  law  which  Mr.  Black  proposes  as  a  means  of  establish- 

ing such  responsibility. 

10.  How  does  Mr.  Black  apply  the  "  Roosevelt  Trust  Policy  "  to  the 

question  of  industrial  relations? 

11.  What  has  been  responsible   for   the  increasing  demand   that   in- 

dustrial disputes  be  settled  by  compulsory  arbitration? 

12.  When  was  the  Kansas  Court  of  Industrial  Relations  established? 

13.  OutUne  the  powers  of  this  court. 

14.  How  does  this  court  enforce  its  decisions? 

15.  Give  the  main  provisions  in  the  labor  program  proposed  in  1919 
by  the  Chamber  of  Commerce  of  the  United  States. 


252  READINGS  IN  AMERICAN  DEMOCRACY 

i6.    What  is  meant  by  employee  representation? 

17.  In  what  two  quarters  has  the  idea  of  employee  representation 

aroused  opposition? 

18.  Does  this  opposition  prove  that  the  principle  of  employee  repre- 

sentation is  a  mistaken  one?     Why? 

19.  Explain   how  employee   representation   supplements,   rather   than 

absorbs,  the  functions  of  the  trade  union. 

20.  What  is  meant  by  saying  that  "  employee  representation  offers 

no  royal  road  to  industrial  peace  "? 


CHAPTER  XIX 

HEALTH   IN    INDUSTRY 
109.   The  conservation  of  human  life  ^ 

One    of    the    most    significant    developments    in    contemporary   Growing 

American  life  is   the   movement   toward   conservation.     Since   the   ™r»'''^^"'^^ 

of  conser- 

days  of  President  Roosevelt  the  question  of  the  conservation  of  vation. 
natural  resources  has  been  attracting  wide  attention,  and  yet  this 
is  only  one  phase  of  conservation.  The  greater  and  more  inclusive 
problem  is  that  of  national  efficiency.  The  waste  of  human  life 
and  energy  in  the  United  States  is  a  menace  to  our  national  effi- 
ciency, and  the  elimination  of  reduction  of  this  waste  constitutes 
a  grave  social  problem.  Some  phases  of  this  problem  are  discussed 
in  the  following  extract  from  the  Report  on  National  Vitality,  Its 
Wastes  and  Conservation,  prepared  for  the  National  Conservation 
Commission  in   1908,  by  Professor  Irving  Fisher: 

Part    II  —  Breadth  of  Life  versus  Invalidity 
Chapter     HI  —  Prevalence  of  Serious  Illness 
I.  Loss  of  time.  —   Life  is  shortened  by  death  and  narrowed  by  Loss  of 

invalidity.     The  ideal  life,  with  respect   to  health,  would  be  free   ^""'-'    , 

through 
from  illness  and  disability  of  every  kind.     To  approximate  such  an    death  and 

ideal  is  the  aim  of  hygiene.     It  is  usually  true  that  the  healthier  a   sickness. 

life  the  longer  it  will  last.    Humboldt  maintained  that  he  had  lived 

four  working  Hves  by  retaining  a  working  power  double  the  average 

for  double  the  average  number  of  years.     According  to  Farr,  for 

every  death  there  is  an  average  severe  sickness  of  two  years,  or  for 

each  death  per  year  there  are  two  persons  sick  throughout  the  year. 

This  would  mean  in  the  United  States  that,  as  there  are  about  1,500,- 

•  From  the  Committee  of  One  Hundred  on  National  Health,  Report  on  National 
Vitality,  Its  Wastes  and  Conservation,  prepared  by  Irving  Fisher.  Washington, 
1909.    Summarj'  of  Parts  11  and  iv. 

253 


Accidents. 


Evils  of  a 
too  long 
working  day. 


254 


READINGS  IN  AMERICAN  DEMOCRACY 


000  annual  deaths,  there  will  always  be  about  3,000,000  persons 
on  the  sick  Hst,  which  is  equivalent  to  about  thirteen  days 
per  capita.  .  .  . 

American  railways  in  1907- 1908  killed  nearly  11,800  and  injured 
nearly  111,000  persons.  The  deaths  and  disablements  from  ac- 
cidents in  industry,  although  less  carefully  recorded,  also  represent 
a  great  and  needless  impairment  of  efficiency.  .  .  . 

Chapter  V  —  Prevalence  of  undue  fatigue 
...  6.  The  working  day.  —  The  present  working  day,  from  a  phys- 
iological standpoint,  is  too  long,  and  keeps  the  majority  of  men  and 
women  in  a  continual  state  of  over-fatigue.  It  starts  a  vicious  circle, 
leading  to  the  craving  of  means  for  deadening  fatigue,  thus  inducing 
drunkenness  and  other  excesses.  Experiments  in  reducing  the  work- 
ing day  show  a  great  mprovement  in  the  physical  efficiency  of  labor- 
ers, and  in  many  cases  result  in  even  increasing  their  output  suf- 
ficiently to  compensate  the  employer  for  the  shorter  day.  Several 
examples  of  such  a  result  exist,  but  the  real  justification  for  a  shorter 
work  day  is  found  in  the  interest  of  the  race,  not  the  employer. 
One  company,  which  keeps  its  factory  going  night  and  day,  found, 
on  changing  from  two  shifts  of  twelve  hours  each  to  three  shifts 
of  eight  hours  each,  that  the  efficiency  of  the  men  gradually  in- 
creased, and  the  days  lost  per  man  by  iUness  fell  from  seven  and 
one-half  to  five  and  one-half  per  year.  Public  safety  requires,  in 
order  to  avoid  railway  collisions  and  other  accidents,  the  prevention 
of  long  hours,  lack  of  sleep,  and  undue  fatigue  in  workmen.  .  .  . 


Preventable 
human 
wastes 
measured 
in  money. 


Part  IV  —  Results  of  Conserving  Life 

Chapter  XII  —  The  Money  Value  of  Increased  Vitality 
I.  Money  appraisal  of  preventable  wastes.  —  Doctor  Farr  has 
estimated  the  net  economic  value  of  an  English  agricultural 
laborer  at  various  times  of  fife  by  discounting  his  chance  of  future 
earnings  after  subtracting  the  cost  of  maintenance.  On  the  basis 
of  this  table  we  may  construct  a  rough  estimate  of  the  worth  of  an 
average  American  life  at  various  ages,  assuming  that  only  three- 
fourths  of  those  of  working  age  are  actually  earners  of  money  or 
housekeepers. 


HEALTH  IN   INDUSTRY  255 

It  gradually  rises  from  a  value  of  $90  in  the  first  year  to  84,200  Example  of 
at  the  age  of  30,  and  then  declines  until  it  becomes  negative  for  the  ^^'^  United 
higher  ages.  .  .  .  Applying  this  table  to  [our]  existing  population 
at  various  ages,  ...  we  find  that  the  average  value  of  a  person  now 
Uving  in  the  United  States  is  $2,900,  and  the  average  value  of  the 
lives  now  sacrificed  by  preventable  deaths  is  $1,700.  .  .  .  Applying 
the  $2,900  to  the  population  of  eighty-five  and  a  half  millions,  we 
find  that  our  population  may  be  valued  as  assets  at  more 
than  $250,000,000,000;  and  since  the  number  of  preventable  deaths 
is  estimated  at  630,000,  the  annual  waste  from  preventable  deaths 
is  630,000  times  $1,700  or  about  $1,000,000,000.  This  represents 
the   annual   preventable   loss   of   potential   earnings.  .  .  . 


110.    Minimum  standards  for  child  laborers  ^ 
From  the  standpoint  of  national  health,  one  of  the  most  serious   Progress  in 
evils  in  American  fife  is  the  widespread  employment  of  young  chil-   [g'^'j'gj.f^"'^ 
dren  in  industrial  establishments.     Fortunately  there  is  an  increas- 
ingly large  number  of  laws  which  Umit  and  control  child  labor. 
Thanks  to  the  pubhcity  work  of  such  organizations  as  the  National 
Child  Labor  Committee,  the  public  is  becoming  aware  of  the  neces- 
sity of  still  further  safeguarding  young  children,  so  that  the  future 
will  undoubtedly  see  a  steady  reduction  in  the  evil  of  child  labor. 
The  following  are  the  minimum  standards  for  children  entering  em- 
ployment, as  drawm  up  by  the  Washington  and  Regional  Confer- 
ences on   Child  Welfare  in   191 9: 

Minimum  Standards  for  Children  Entering  Employment 
Age  Minimum.  —  An  age  minimum  of  16  for  employment  in  any   Standards 

occupation,  except  that  children  between  14  and  16  may  be  employed   ^"^^  children 
,  .7  1'.'         entering  in- 

in  agriculture  and  domestic  service  during  vacation  periods  until   dustry,  with 

schools  are  continuous  throughout  the  year.  respect  to 

...  =ige, 

An  age  minimum  of  18  for  employment  in  and  about  mines  and 

quarries. 

An  age  minimum  of  21  for  girls  employed  as  messengers  for  tele- 
graph  and*  messenger   companies. 

*  From  the  Washington  and  Regional  Conferences  on  Child  Welfare,  1919.    (Printed 
and  distributed  by  the  National  Child  Labor  Committee.) 


256 


READINGS  IN  AMERICAN  DEMOCRACY 


education, 


physical 
condition, 


hours  of 
employment, 


An  age  minimum  of  21  for  employment  in  the  special-delivery 
service  of  the  U.  S.  Post  Office  Department. 

Prohibition  of  the  employment  of  minors  in  dangerous,  unhealthy, 
or  hazardous  occupations,  or  at  any  work  which  will  retard  their 
proper   physical   or   moral   development. 

Educational  Minimum.  —  All  children  between  7  and  16  years 
of  age  shaU  be  required  to  attend  school  for  at  least  nine  months 
each  year. 

Children  between  16  and  18  years  of  age  who  have  completed  the 
eighth  but  not  the  high-school  grade,  and  are  legally  and  regularly 
employed,  shall  be  required  to  attend  day  continuation  schools  at 
least  eight  hours  a  week. 

Children  between  16  and  18  who  have  not  completed  the  eighth 
grade  or  children  who  have  completed  the  eighth  grade  and  are 
not  regularly  employed  shall  attend  full-time  school.  Occupational 
training  expecially  adapted  to  their  needs  shall  be  provided  for 
those  children  who  are  unable  because  of  mental  subnormaUty 
to  profit   by  ordinary  school   instruction. 

Vacation  schools  placing  special  emphasis  on  healthful  play  and 
leisure  time  activities,  shall  be  provided  for  all  children. 

Physical  minimum.  —  A  child  shall  not  be  allowed  to  go  to  work 
until  he  has  had  a  physical  examination  by  a  pubhc-school  physician 
or  other  medical  officer  especially  appointed  for  that  purpose  by 
the  agency  charged  with  the  enforcement  of  the  law,  and  has  been 
found  to  be  of  normal  development  for  a  child  of  his  age  and 
physically  fit  for  the  work  at  which  he  is  to  be  employed. 

There  shall  be  annual  physical  examination  of  all  working  children 
who  are  under  18  years  of  age. 

Hours  of  employment.  —  No  minor  shaU  be  employed  more  than 
8  hours  a  day  or  44  hours  a  week.  The  maximum  working  day  for 
children  between  16  and  18  shall  be  shorter  than  the  legal  working 
day  for  adults. 

The  hours  spent  at  continuation  schools  by  children  under  18 
years  of  age  shall  be  counted  as  part  of  the  working  day. 

Night  work  for  minors  shall  be  prohibited  between  6  P.M. 
and  7  A.M. 

Minimum  wage.  —  Minors  at  work  shall  be  paid  at  a  rate  of  wages  11 


HEALTH  IN  INDUSTRY  257 

which  for  full-time  work  shall  yield  not  less  than  the  minimum  and  wages, 
essential  for  the  "necessary  cost  of  proper  hving,  as  determined  by 
a  minimum  wage  commission  or  other  similar  official  board."  Dur- 
ing a  period  of  learning  they  may  be  rated  as  learners  and  paid 
accordingly.  The  length  of  the  learning  period  should  be  fixed  by 
such  commission  or  other  similar  official  board,  on  educational 
principles   only. 

Placement  and  employment  supervision.  —  There  shall  be  a  central   Some  addi- 
agency  which  shall  deal  with  all  juvenile  employment  problems.  .  .  .    ^'^°"^'^rjg 

Employment  certificates.  —  Provision  shall  be  made  for  issuing  eni- 
ployment*  certificates  to  aU  children  entering  employment  who  are 
under   18  years  of  age.  .  .  . 

Compulsory  attendance  laws.  —  Full-time  attendance  officers  ade- 
quately proportioned  to  the  school  population  shall  be  provided 
in  cities,  towns,  and  counties  to  enforce  the  school  attendance 
law.  .  .  . 

Factory  inspection  and  physical  examination  of  employed  minors.  —   Factory 
The  number  of  [[factory]   inspectors   shall    be  sufficient    to   insure   .^^^^  nhysi- 
semi-annual  inspection  of  all  establishments  in  which  children  are   cal  examina- 
employed,    and  such    special  inspections   and  investigations  as  arc 
necessary  to  insure  the  protection  of  the  children. 

Provision  should  be  made  for  a  staff  of  physicians  adequate  to 
examine  annually  all  employed  children  under  18  years  of  age. 


111.   Standards  governing  the  employment  of  women  ^ 

Closely  related  to  the  question  of  child  labor  is  the  employment    Increasing 
of  women  in  industrial  estabHshments.     While  most  students  agree   "^Pfrtance 

°  of  the  prob- 

that  the  employment  of  women  ought  to  be  safeguarded  rather  lem  of 
than  actually  prohibited,  nevertheless  such  employment  may  give 
rise  to  problems  fully  as  grave  as  those  arising  from  child  labor. 
During  recent  years  the  proportion  of  gainfully  employed  women 
in  the  United  States  has  been  increasing  steadily,  and  the  question 
of  their  protection  in  industrial  pursuits  is  attracting  more  and  more 
attention.     In  1918  the  United  States  Department  of  Labor  drew 

'  From  the  United  States  Department  of  Labor,  Standards  for  the  Employment 
of  Women  in  Industry.     Bulletin  No.  3,  Washington,  iqi8. 


tion. 


women  m 
industry. 


258 


READINGS  IN  AMERICAN   DEMOCRACY 


The  hours 
of     labor 
for  women 
in  industry. 


Wages. 


Working 
conditions 
in  estab- 
lishments 
employing 
women. 


up  the  following  standards  governing  the  employment  of  women 
in  industry: 

Standards  Recommended  for  the  Employment  of  Women 

(In  the  following  outline  the  italic  type  in  the  text  indicates  those 
provisions  which  are  held  to  be  of  the  most  vital  importance.) 

I.  Hours  of  Labor 

1.  Daily  hours.  No  women  shall  be  employed  or  permitted  to  work 
more  than  eight  hours  in  any  one  day.  The  time  when  the  work  of 
women  employees  shall  begin  and  end  and  the  time  allowed  for  meals 
shall  be  posted  in  a  conspicuous  place  in  each  work  room  and  a  record 
shall  be  kept  of  the  overtime  of  each  woman  worker. 

2.  Half  holiday  on  Saturday.  Observance  of  the  half-holiday  should 
be  the  custom. 

3.  One  day  of  rest  in  seven.  Every  woman  worker  shall  have  one 
day  of  rest  in  every  seven  days. 

4.  Time  for  meals.  At  least  three-quarters  of  an  hour  shall  be  al- 
lowed for  a  meal. 

5.  Rest  periods.  ...  ' 

6.  Night  work.  No  women  shall  be  employed  between  the  hours  of 
ten  P.M.  and  six  A.M. 

II.   Wages 

1.  Equality  with  men's  wages.  Women  doing  the  same  work  as 
men  shall  receive  the  same  wages  with  such  proportionate  increases 
as  the  men  are  receiving  in  the-  same  industry.  .  .  . 

2.  The  basis  of  determination  of  wages.  Wages  should  be  estab- 
lished on  the  basis  of  occupation  and  not  on  the  basis  of  sex.  The 
minimum  wage  rate  should  cover  the  cost  of  living  for  dependents  and 
not  merely  for  the  individual. 

III.  Working  Conditions 
I.  Comfort  and  sanitation.  —  State  labor  laws  and  industrial 
codes  should  be  consulted  with  reference  to  provisions  for  comfort 
and  sanitation.  Washing  facilities,  with  hot  and  cold  water,  soap 
and  individual  towels,  should  be  provided  in  sufficient  number  and 
in  accessible  locations  to  make  washing  before  meals  and  at  the  close 
of  the  work  day  convenient. 


HEALTH  IN  INDUSTRY  259 

Toilets  should  be  separate  for  men  and  women,  clean  and  accessible. 
Their  numbers  should  have  a  standard  ratio  to  the  number  of  workers 
employed.  Workroom  floors  should  be  kept  clean.  Dressing  rooms 
should  be  provided  adjacent  to  washing  facilities,  making  possible 
change  of  clothing  outside  the  workrooms.  Rest  rooms  should 
be  provided.  Lighting  should  be  arranged  that  direct  rays  do  not 
shine  into  the  workers'  eyes.  V^entilation  should  be  adequate  and 
heat  suflicient.  Drinking  water  should  be  cool  and  accessible  with 
individual  drinking  cups  or  bubble  fountain  provided.  Provision 
should  be  made  for  the  workers  to  secure  a  hot  and  nourishing  meal 
eaten  outside  the  workroom,  and  if  no  lunch  rooms  are  accessible  near 
the  plant,  a  lunch  room  should  be  maintained  in  the  establishment. 

2.  Posture  at  work.  —  Continuous  standing  and  continuous 
sitting  are  both  injurious.  A  seat  should  be  provided  for  every 
woman  employed  and  its  use  encouraged.  It  is  possible  and  desir- 
able to  adjust  the  height  of  the  chairs  in  relation  to  the  height  of 
machines  or  work  tables,  so  that  the  worker  may  with  equal  con- 
venience and  efficiency  stand  or  sit  at  her  work.  The  seats  should 
have  backs.     If  the  chair  is  high,  a  foot  rest  should  be  provided. 

3.  Safety.  —  Risks  from  machinery,  danger  from  fire  and  ex- 
posure to  dust,  fumes  or  other  occupational  hazards  should  be 
scrupulously  guarded  against  by  observance  of  standards  in  state 
and  Federal  codes.  First  aid  equipment  should  be  provided.  Fire 
drills  and  other  forms  of  education  of  the  workers  in  the  observance 
of  safety  regulations  should  be  instituted.  .  .  . 

I\'.   Home  Work 

I.   No  work  shall  be  given  out  to  be  done  in  rooms  used  for  living  Home  work. 
or  sleeping   purposes  or   in   rooms   directly  connected  with  living  or 
sleeping   rooms   in   any  dwelling   or   tenement.  .  .  . 

112.   Results  of  minimum  wage  legislation  * 

One  method  of  protecting  women  and  children  in  industry  is  through 

minimum  wage  legislation.    The  essential  feature  of  a  minimum  wage 

law  is  that  it  provides  that  in  all  or  specified  occupations  certain 

'  From  the  United  States  Department  of  Labor,  Bureau  of  Labor  Statistics, 
Monthly  Labor  Review.     Washington,  March,  1921;  pp.  17-20. 


26o 


READINGS  IN  AMERICAN  DEMOCRACY 


Origin  and 
development 
of  minimum 
wage  legis- 
lation in 
the  United 
States. 


Extent  of 
the  survey 
conducted 
by  the  U.S. 
Department 
of  Labor  in 
1919. 


Attitude  of 
employers 
toward  the 
minimum 
wage  law  in 
San  Fran- 
cisco 


individuals  may  not  be  employed  at  less  than  a  designated  wage.  The 
first  minimum  wage  statute  in  this  country  was  enacted  by  Massachu- 
setts in  191 2,  but  so  rapidly  did  the  movement  spread  that  by  1921 
more  than  a  dozen  states  had  minimum  wage  laws  on  their  statute 
books.  In  every  case,  such  legislation  apphes  only  to  the  employment 
of  women  and  children,  men  being  exempted  from  the  operation 
of  this  type  of  law.  In  1919  the  United  States  Department  of  Labor 
conducted  a  survey  of  minimum  wage  legislation  in  the  United 
States  in  order  to  discover  its  effects.  The  following  is  an  extract 
from  the  report  of  the  Department: 

[What  is  the  attitude  of  the  employers  toward  the  law?  The 
agent  of  the  Bureau  of  Labor  Statistics  in  the  Department  of  Labor], 
in  his  tour  of  ten  states  was,  of  course,  able  to  interview  only  a  frac- 
tional part  of  the  employers  affected.  However,  the  aggregate 
amounted  to  above  260,  with  more  than  62,000  women  and  minors 
in  their  employment.  The  number  of  employers  who  expressed 
actual  opposition  to  the  law  was  almost  negligible,  though  some  were 
vigorous  in  their  denunciation  of  it.  The  great  majority  accepted 
the  law  as  a  declaration  of  state  poHcy  and  declared  themselves 
ready  to  comply  therewith,  while  many  went  beyond  this  and  ex- 
pressed cordial  approval  of  its  principle  and  purpose.  .  .  . 

Thus,  taking  a  run  of  expressions  in  San  Francisco  as  they  were 
obtained,  a  department-store  employer  said  that  he  had  no  objec- 
tion to  the  law,  that  it  worked  no  hardship,  that  the  girls  were  inter- 
ested to  make  good,  and  that  the  law  was  a  great  help  in  developing 
standards.  The  next  visit  was  to  a  5  and  10  cent  store  in  which  the 
law  was  said  to  be  satisfactory,  causing  conditions  which  tended 
toward  stability.  Next  a  large  department  store  reported  the  law 
"has  an  effect  to  stabiUze  and  standardize  employment,  this  being 
one  of  the  chief  accompHshments  of  the  law";  "have  had  no  dis- 
missal or  reduction  in  twelve  months  on  account  of  incompetency." 
Next  a  smaller  department  store  (275  females)  reported  it  "not 
objectionable,"  while  the  women  "think  it  greatly  worth  while." 
Next  a  department  store:  "Is  splendid,  rates  certainly  not  too  high," 
and  it  was  beUeved  that  employers  generally  favored  the  law.  One 
of  the  largest  stores:  "  Such  a  law  is  the  only  thing  to  have";  another 
department  store:  " Regard  it  most  favorably " ;  cannery:  "Is  satis- 


HEALTH  IN  INDUSTRY  261 

factory";  .  .  .  chocolate  factory:  "Want  Federal  law  to  protect 
against  interstate  competition";  glace  fruits:  "No  objection  to 
law,  but  should  be  gejieral";  candies:  "Has  good  effect";  .  .  . 
lithograph  company:  "Law  no  check  on  business";  .  .  .  clothing 
factory:  "Attitude  is  favorable,  though  the  law  should  be  general"; 
shirts  and  overalls:  "Is  a  good  thing";  5  and  10  cent  store:  "Ap- 
prove of  the  law,  but  should  be  general";  knit-goods  factory:  "Find 
it  better  to  pay  above  minimum,  though  think  the  law  has  no  effects 
on  the  quaUty  of  the  workers";  clothing  factory:  "Law  no  check 
on  business";  millinery:  "No  objection  to  law  since  it  treats  all 
alike";  .  .  .  bags:  "Law  is  good  thing,  as  it  holds  out  prospect 
of   advance   to   those   who   stay   through   learning   period";  .  .   . 

This  complete  roster  of  the  places  visited  in  an  important  city  and  in 
in  which  union  conditions  only  partially  prevail  is  beUeved  to  be  "'■^^'^  "^^^" 
fairly  representative.  .  .  .  Expressions  found  in  the  "Twin  Cities" 
of  Minnesota  run  as  follows:  "Law  not  desirable  though  it  has 
a  good  effect  for  low-grade  establishments";  "rate  reasonable  now 
but  may  be  too  high  under  other  conditions";  "no  objection"; 
"all  right  for  skilled,  but  makes  rate  for  learners  too  high  and  ad- 
vances too  rapid";  "law  all  right";  "law  is  acceptable";  "tends 
to  stabihze  and  gives  self-respect  to  workers";  "approve  the  law, 
rates  might  be  higher";  " disUke  it  very  much " ;  " glad  to  have  it " ; 
"help  is  better  and  more  contented";  "have  been  hurt  and  no  help"; 
"not  Uked,  patemaHstic";  "law  is  aU  right";  "all  right,  but  learners' 
rates  too  low-";  "are  ahead  of  law  and  intend  always  to  comply"; 
"is  all  right  and  might  go  higher";  "attitude  favorable";  "approve 
the  law  and  could  stand  higher  rate  if  uniform";  "keep  ahead  of 
law";  "principle  is  good";  "gladly  comply";  "hearty  coopera- 
tion"; .  .  . 

Organized  labor  was,  for  the  most  part,  found  to  be  favorable  to   The  atti- 
legislation  of  this  type,  the  claim  being  made  in  several  stales  that   ^"g^j^^gj 
the  act  was  "organized  labor's  bill."     State  conventions  have  gone   labor. 
on  record  in  favor  of  the  measures  and  their  adequate  enforcement, 
so  that  the  occasional  criticism  made  to  the  effect  that  the  law  was 
bad,  because  it  led  the  women  to  depend  on  it  rather  than  to  organize, 
must  be  discounted  as  not  indicating  the  general  opinion  of  union 
labor  on  the  subject. 


262 


READINGS  IN  AMERICAN  DEMOCRACY 


Conclusion.  The  conclusion  is  inevitable  that  the  allegations  of  injury  to  the 

workers  as  a  result  of  minimum  wage  laws  are  without  foundation, 
and  that  employers  find  it  at  least  feasible  to  operate  under  the  law, 
while  many  of  them  are  its  ardent  supporters.  .  .  . 


Social  in- 
surance in 
the  United 
States. 


Title  and 
(ippli  cation 
of  the  law. 


The  liability 
of  the 
employer. 


113.   A  typical  workmen's  compensation  law^ 

Of  increasing  importance  in  the  field  of  labor  legislation  is  social 
insurance.  Social  insurance  involves  the  compulsory  insurance  of 
industrial  employees  against  accident,  sickness,  old  age,  or  unem- 
ployment. Up  to  the  present  time  the  only  form  of  social  insurance 
which  has  met  with  wide  favor  in  the  United  States  is  insurance  against 
industrial  accidents.  Such  insurance  is  now  quite  generally  provided 
under  so-caUed  workmen's  compensation  laws.  The  following  ex- 
tracts from  the  Workmen's  Compensation  Law  of  New  York  will 
Ulustrate  something  of  the  purpose  and  scope  of  such  legislation: 

Article  i.  Section  i.  Short  title.  —  This  chapter  shall  be  known 
as  the  "workmen's  compensation  law." 

Section  2.  Application.  —  Compensation  provided  for  in  this 
chapter  shall  be  payable  for  injuries  sustained  or  death  incurred 
by  employees  engaged  in  the  following  hazardous  employments: 
[Here  following  a  detailed  Ust  of  employments,  classified  into  forty- 
seven  groups.]  .  .  . 

Article  2,  Section  10.  Liability  for  compensation.  —  Every 
employer  subject  to  the  provisions  of  this  chapter  shall  pay  or  pro- 
vide as  required  in  this  chapter  compensation  according  to  the 
schedule  of  this  article  for  the  disability  or  death  of  his  employee 
resulting  from  an  accidental  personal  injury  sustained  by  the  em- 
ployee arising  out  of  and  in  the  course  of  his  employment,  without 
regard  to  fault  as  a  cause  of  such  injury,  except  where  the  injury  is 
occasioned  by  the  wilful  intention  of  the  injured  employee  to  bring 
about  the  injury  or  death  of  himself  or  of  another,  or  where  the 
injury  results  solely  from  the  intoxication  of  the  injured  employee 
while  on  duty.  .  .  . 

Section   12.   Compensation  not  allowed  for  first  two  weeks. — No 

1  From  the  Statutes  of  the  State  0/  New  York,  Workmen's  Compensation  Law, 
as  amended  to  August  i,  1920. 


HEALTH  IN  INDUSTRY  263 

compensation  shall  be  allowed  for  the  first  fourteen  days  of  disability,   a  two 

except  the  benefits  provided  for  in  section  thirteen  of  this  chapter,   "^^^^^  . 

^  ...  exemption 

provided,  however,  that  in  case  the  injury  results  in  disability  of   period. 

more  than  forty-nine  days  the  compensation  shall  be  allowed  from 

the  date  of  the  disabihty. 

Section  13.     Treatment  and  care  of  injured  employees.  —  The  -em-  The  treat- 
ployer  shall  promptly  provide  for  an  injured  employee  such  medical,   '"'^"'^  j"l 
surgical  or  other  attendance  or  treatment,  nurse  and  hospital  service,   injured 
medicine,  crutches  and  apparatus  as  the  nature  of  the  injury  may   ^""^     ^°" 
require  during  si.xty  days  after  the  injury;  but  the  [state  commission 
administering  the  law]  may,  where  the  nature  of  the  injury  or  the 
process  of  recovery  requires  a  longer  period  of  treatment,  require 
the  same  from  the  employer.  .  .  . 

Section    14.      Weekly  wages   basis   of  compensation.  —  Except   as    Basis  of 
otherwise  provided  in  this  chapte"-,  the  average  weekly  wages  of  the    compcnsa- 
injurcd  employee  at  the  time  of  the  injury  shall  be  taken  as  the  basis 
upon  which  to  compute  compensation  or  death  benefits.  .  .  . 

Section  15.    Schedule  in  case  of  disability.  —  The  following  schedule   Schedule 
of  compensation  is  hereby  established:  governing 

1.  Total  permanent  disability.    In  case  of  total  disability  adjudged   rnent  of 

to  be  permanent  sixty-six  and  two-thirds  per  centum  of  the  average   ^"lounts 

due  the 
weekly  wages  shall  be  paid  to  the  employee  during  the  continuance   injured 

of  such  total  disabihty.    Loss  of  both  hands,  or  both  arms,  or  both   workman. 

feet,  or  both  legs,  or  both  eyes,  or  of  any  two  thereof  shall,  in  the 

absence  of  conclusive  proof  to  the  contrary,  constitute  permanent 

total  disability.  .  .  . 

2.  Temporary  total  disabihty.  In  case  of  temporary  total  dis- 
abihty, sixty-six  and  two-thirds  per  centum  of  the  average  weekly 
wages  shall  be  paid  to  the  employee  during  the  continuance  thereof, 
but  not  in  excess  of  three  thousand  five  hundred  dollars,  except  as 
otherwise  provided  in  this  chapter. 

3.  Permanent  partial  disabihty.  In  case  of  disability  partial  in 
character,  but  permanent  in  quality,  the  compensation  shall  be  sixty- 
six  and  two-thirds  per  centum  of  the  average  weekly  wages  and  shall 
be  paid  to  the  employee  for  the  period  named  in  the  schedule,  as 
follows: 

Thumb.    For  the  loss  of  a  thumb,  sixty  weeks. 


The  death 
benefit. 


264 


READINGS  IN  AMERICAN   DEMOCRACY 


I 


First  finger.     For  the  loss  of  a  first  finger,  commonly  called  index 
finger,  forty-six  weeks. 

Second  finger.     For  the  loss  of  a  second  finger,  thirty  weeks.  ' 
Third  finger.     For  the  loss  of  a  third  finger,  twenty-five  weeks, 
Fourth  finger.     For  the  loss  of  a  fourth  finger,  commonly  called 
the  Uttle  finger,  fifteen  weeks. 

[The  remainder  of  this  section  specifies  the  nature  and  extent  of 
compensation  for  injury  sustained  to  other  parts  of  the  body.] 

Section    16.     Death   benefits.  —  If   the   injury   causes   death,   the 
compensation  shall  be  known  as  a  death  benefit  and  shall  be  payable 
in  the  amount  and  to  and  for  the  benefit  of  the  persons  following: 
[The  remainder  of  this  section  specifies  the  amount  of  the  funeral, 
expenses,  and  the  nature  and  extent  of  compensation  paid  the  sur-' 
viving  wife,  dependent  husband,  dependent  children  or  other  desig-; 
nated  dependents.]  ... 


The  opposi- 
tion to 
labor  legis- 
lation. 


Certain 

negative 

clauses 


114.   The  constitutionality  of  labor  legislation  ^ 

The  student  of  American  pohtics  cannot  but  be  struck  by  the  recent|| 
tendency  of  our  legislatures  to  enact  statutes  which  have  for  theii 
prime  purpose  the  protection  of  wage-earners.  Yet  marked  as  this 
tendency  has  been,  labor  legislation  in  this  country  has  met  with  con- 
siderable opposition.  Our  system  of  written  constitutions  and  our 
dual  form  of  government,  dividing  responsibiUty  for  action  or  in- 
action between  the  Federal  government  and  the  various  state  govem- 
ments,  introduce  many  compUcations.  The  jealousy  existing  be- 
tween states  often  prevents  the  passage  of  social  legislation,  and 
the  plea  of  "constitutionaHty"  may  nuUify  statutes  duly  enacted. 
In  the  following  selection,  Professor  Carlton  discusses  this  last- 
named  obstacle  to  labor  legislation: 

Trend  of  Court  Decisions.  —  The  extreme  aversion  to  legal  hmita- 
tions  upon  the  independence  of  the  individual,  and  the  excessive 
fear  of  governmental  control,  have  led  to  some  unanticipated  con- 
sequences. Certain  negative  clauses  which  restrain  constituted 
authority  were  incorporated  into  our  state  and  Federal  constitutions 
These  clauses  were  aimed  at  the  ever-present  specter  of  tyrannical 

1  From  Frank  Tracy  Carlton,  The  History  and  Problems  of  Organized  Labor 
D.  C.  Heath  &  Co.,  191 1;  pp.  269-272. 


HEALTH  IN  INDUSTRY  265 

government.  By  a  peculiar  transmutation  through  judicial  interpreta- 
tion they  have  become  bulwarks  behind  which  property  owTiers 
are  able  to  strongly  intrench  themselves.  The  familiar  clause  declar- 
ing that  no  person  shall  "be  deprived  of  life,  liberty,  or  property,  . 
without  due  process  of  law,"  was  originally  inserted  into  our  con- 
stitutional system  in  order  to  prevent  confiscation  of  property  by 
tyrannical  officials. 

Another  famihar  prohibition  incorporated  into  our  constitutional   in  our  Fed- 
system  for  similar  reasons  declares  that  no  law  may  be  passed  which   ^^'^^  '^"^ 

state  con- 
interferes  with  the  freedom  of  private  contracts  or  engagements,    stitutions 

Again,  more  or  less  defined  prohibitions  of  special  or  class  legislation   ^^^^  ^'^^^ 
?.  ,  ...  ,  ,  interpreted 

which  grants  special  privileges  are  found  in  the  constitutions  of   so  as 

many  states;  and  the  fourteenth  amendment  to  the  Federal  Consti- 
tution among  other  things  declares  "that  no  state  shall  make  or 
enforce  any  law  which  shall  abridge  the  privileges  or  immunities  of 
citizens  of  the  United  States.". 

Strictly  interpreted,  these  clauses  seem  to  constitute  a  constitu-   artificially 

tional  prohibition  of  legislation  which  interferes  with  the  so-called  ^°  strengthen 

individual 
freedom  of  contract,  and  of  class  legislation.     In  reality,  these  pro-   and  corpo- 

hibitions  artificially  strengthen  what  are  called  individual  and  cor-   ^^^^  nghts. 

porate    rights,    and    give    those    rights    an    almost    impregnable 

position.  .  .  . 

Labor   legislation   constitutes   an   interference   with   the   original   Labor  legis- 

and  unmodified  doctrines  of  liberty  and  of  the  freedom  of  contract.    ^^'""  ^,?'^ 

the  police 
Labor  legislation  when  sustained  by  the  courts  is  sustained  as  a  legiti-   power. 

mate  exercise  of  the  police  power.  The  decisions  are  still  conflicting, 
and  the  outcome  in  a  given  case  involving  the  application  of  the 
police  power,  uncertain;  but  the  philosophy  underlying  our  judi- 
cial system  is  undoubtedly  undergoing  radical  and  far-reaching 
modifications. 
The  majority  of  the  members  of  the  Supreme  Court  of  the  United   Conserva- 

States  during  the  decade  from  1000  to  loio  were  old  men.    Several   ^'^'^  '"f^",' 

ence  of  the 
were  over  seventy  years  of  age;    and  a  recent  appointee  is  nearly   Supreme 

seventy  years  old.    These  men  received  their  training  and  had  their   Court,  1900 

•  1      ,  J      ,  .  to   1910. 

ideals  and  philosophy  of  life  definitely  formulated  a  generation  ago. 
But  since  that  time  the  fundamentals  of  economic  and  political  sci- 
ence have  been  subjected  to  important  transformations.    As  younger 


266 


READINGS  IN  AMERICAN  DEMOCRACY 


The  recent 
trend  of 
court  deci- 
sions is  fa- 
vorable to 
the  develop- 
ment of 
labor  legis- 
lation. 


men,  trained  in  the  newer  school  of  economics  and  saturated  with 
the  recent  teachings  of  our  colleges  and  universities,  come  to  the 
front  in  the  legal  profession,  we  may  confidently  expect  the  older 
laissez  jaire  or  individuaUstic  theory  of  the  law  and  of  justice  to  be 
more  rapidly  modified. 

The  trend  of  court  decisions  has  been  away  from  the  traditional 
idea  of  freedom  and  laissez  Jaire,  and  toward  an  increase  in  the  police 
power  of  the  state  in  the  interests  of  practical  and  tangible  freedom 
for  the  individual.  The  pressure  of  industrial  change  has  been  so 
potent  and  compelling  that  legal  precedents,  social  inertia,  and  the 
direct  opposition  of  certain  classes  in  the  community  have  gradually, 
but  tardily,  yielded.  There  is  reason  to  believe  that  many  limita- 
tions now  deemed  essential  by  our  courts  will  soon  be  seen  to  be 
non-essential  and  subversive  of  free  institutions  in  the  twentieth  ■ 
century.  .  .  .  One  student  of  this  problem  has  arrived  at  the  con- 
clusion that  the  constitutionality  of  a  restrictive  labor  law  depends 
upon  its  wisdom.  "In  other  words,  granted  that  a  restriction  is 
wise  under  the  given  condition,  it  is  an  easy  task  to  prove  that  it 
is  also  constitutional."  This  over-enthusiastic  statement  is  borne 
out  in  a  large  measure  by  the  court  decisions  relative  to  the  constitu- 
tionality of  laws  Umiting  the  hours  of  the  working  day.  It  is  perhaps 
needless  to  remark  that  the  interpretation  of  what  is  wise  or  unwise 
in  a  given  situation  will  be  subject  to  vdde  variation.  .  .  . 


Questions  on  the  foregoing  Readings 

1.  What  is  an  important  menace  to  our  national  efficiency? 

2.  Discuss  the  loss  of  time  in  the   United  States  which  is   due    to 

invalidity. 

3.  What  are  the  effects  of  a  shortened  working  day  upon  health? 

4.  Discuss  the  money  appraisal  of  preventable  waste  in  human  life 

in  the  United  States. 

5.  Outline   the   age   minimum   for   the   employment   of   children,   as 

formulated   by   the   Washington  and   Regional   Conferences  on 
Child  Welfare. 

6.  What  can  be  said  as  to   the  educational  minimum  for  children 

entering  industrial  employments? 

7.  What  physical   minimum   should  be  insisted   upon   for  children 

entering  industry? 


HEALTH  IN  INDUSTRY  267 

8.  What  limitations  should  be  placed  upon  child  labor  with  respect 

to  hours  of  employment? 

9.  What  provision  should  be  made  for  the  physical  examination  of 

employed  minors? 

0.  What  problem  is  closely  related  to  the  question  of  child  labor? 

1.  Is  it  the  opinion  of  most  students  of  the  problem  that  the  employ- 

ment of  women  should  be  prohibited,  or  that  it  should  merely 
be  safeguarded?  . 

2.  Outline  the  standards  recommended  by  the  Department  of  Labor 

with  respect   to  the   hours  during   which   women   ought   to  be 
employed. 

3.  What  are  the  standards  of  this  Department  with  respect  to  the 

wages  of  women? 

4.  Outline  the  chief  recommendations  of  the  Department  of  Labor 

with  respect  to  the  conditions  under   which   women  ought  to 
work. 

5.  What  is  the  recommendation  of  the  Department  with  respect  to 

home  work? 

6.  When  and  where  was  the  first  minimum  wage  law  enacted  in  this 

country? 

7.  Summarize  the  opinions  of  employers  toward  the  minimum  wage, 

as  ascertained  by  the  Bureau  of  Labor  Statistics  in  19 19. 

8.  What,  in  general,  was  found  to  be  the  attitude  of  organized  labor 

toward  this  type  of  legislation? 

9.  What  forms  may  social  insurance  take?     Which  of  these  forms  is 

well  developed  in  the  United  States? 

0.  Summarize  the  provisions  of  the  Workmen's  Compensation  Law 

of  New  York  with  respect  to  the  employer's  liability  for  com- 
pensation. 

1.  What  does  this  law  say  regarding  the  treatment  and  care  of  in- 

jured employees? 

22.  What  does  the  law  say  concerning  the  schedule  of  compensation 

in  case  of  disability? 

23.  What  are  some  of  the  factors  which  have  obstructed  the  progress 

of  labor  legislation  in  this  country? 

24.  Enumerate    some    constitutional    clauses    which    have    artificially 

strengthened  individual  and  corporate  rights. 

25.  What   reason   does   Professor   Carlton   give   for   the   conservative 

character  of  the  decisions  of  our  Supreme  Court  between  1900 
and  1910? 

26.  What  does  Professor  Carlton  conclude  as  to  the  recent  trend  of 

court  decisions  with  respect  to  labor  legislation? 


CHAPTER  XX 


Of  the 
numerous 
phases  of 
the  immi- 
gration 
problem, 
the  eco- 
nomic is  per- 
haps the 
most  funda- 
mental. 


Recent  im- 
migrants 
unfamiliar 
with  the 
occupations 
which  they 
enter  in 
this  coun- 
try. 


Illiteracy. 


IMMIGRATION  AND  ASSIMILATION 
115.   The  nature  of  the  immigrant  labor  supply  ^ 

Of  the  numerous  problems  confronting  the  American  people, 
few  are  more  pressing  and  none  is  more  complex  than  that  of  immi- 
gration. Of  the  many  aspects  which  this  problem  presents,  perhaps 
the  most  fundamental  is  the  economic.  The  influx  into  this  country 
of  milhons  of  unskilled  laborers  has  exerted  a  profound  effect  upon 
our  industrial  Hfe,  and,  indirectly,  upon  our  social  and  political  insti- 
tutions. The  industrial  significance  of  the  immigrant  is  shown  by 
the  following  extract,  in  which  the  United  States  Immigration  Com- 
mission outhnes  the  sahent  characteristics  of  the  labor  supply 
furnished  by  the  "new"  immigration: 

(a)  From  a  strictly  industrial  standpoint,  one  of  the  facts  of  great- 
est import  relative  to  the  new  arrivals  has  been  .  .  .  that  an  ex- 
ceedingly small  proportion  have  had  any  training  or  experience  .  .  . 
for  the  industrial  occupations  in  which  they  have  found  employ- 
ment in  this  country.  The  bulk  of  recent  immigrants  has  been 
drawn  from  the  agricultural  classes  of  southern  and  eastern 
Europe  and  most  of  the  recent  immigrants  were  farmers  or  farm 
laborers  in  their  native-  lands.  In  this  respect  they  afford  a  striking 
contrast  to  immigrants  of  past  years  from  Great  Britain  and  northern 
Europe,  who  were  frequently  skilled  industrial  workers  before  coming 
to  the  United  States,  and  who  sought  positions  in  this  country  similar 
to  those  which  they  had  occupied  abroad. 

(b)  In  addition  to  lack  of  industrial  training  and  experience,  the 
new  immigrant  labor  supply  has  been  found  to  possess  but  small 
resources  from  which  to  develop  industrial  efficiency  and  advance- 
ment. .  .  .  Practically  none  of  the  races  of  southern  and  eastern 

'  From  the  United  States  Immigration  Commission,  Abstracts  of  Reports,  with 
Conclusions,  etc.    Washington,  191 1,  Vol.  i,  pp.  498-500. 

268 


IMMIGRATION  AND   ASSIMILATION  269 

Europe  have  been  able  to  speak  English  at  the  time  of  immigration 
to  this  country,  and,  owing  to  their  segregation  and  isolation  from 
the  native  American  population  in  hving  and  working  conditions, 
their  progress  in  acquiring  the  language  has  been  very  slow.  The 
incoming  supply  of  immigrant  labor  has  also  been  characterized 
by  a  high  degree  of  illiteracy.  .  .  . 

(c)  Still  another  salient  fact  in  connection  with  the  recent  immi-   Effect  of 
grant  labor  supply  has  been  the  necessitous  condition  of  the  new-   p''  o* 
comers.  .  .  .  Recent  immigrants  have  usually  had  but  a  few  dollars  arrival, 
in  their  possession  when  they  arrived  at  the  ports  of  disembarkation. 
Consequently  they  have  found  it  absolutely  imperative  to  engage 
in  work  at  once.    They  have  not  been  in  position  to  take  exception 
to  the  wages  or  working  conditions  offered,  but  must  needs  go  to  work 
on  the  most  advantageous  terms  they  could  secure. 

((/)  The  standards  of  living  of  the  recent  industrial  workers  from    Recent  im- 
the  south  and  east  of  Europe  have  been  low.  .  .  .  During  the  earher   "^'Rranis 
part,  at  least,  of  their  residence  in  the  United  States,  they  have  been   standard  of 
content  with  living  and  working  conditions  offered  to  them,  and     ^'°^" 
it  has  been  only  after  the  most  earnest  solicitation,  or  sometimes 
even  coercion,  upon  the  part  of  older  employees,  that  they  have 
been  persuaded  or  forced  into  protests.  .  .  .  The  life  interest  and 
activity  of  the  average  wage-earner  from  southern  and  eastern  Europe 
have  seemed  to  revolve  principally  about  three  points:    (i)  To  earn 
the  largest  possible  amount  of  immediate  earnings  under  existing 
conditions  of  work ;  (2)  to  Uve  upon  the  basis  of  minimum  cheapness; 
and  (3)  to  save  as  much  as  possible.     The  ordinary  comforts  of  life 
as  insisted  upon  by  the  average  American  have  been  subordinated 
to  the  desire  to  reduce  the  cost  of  hving  to  its  lowest  level. 

(e)  [Again,  recent  immigrants]  have  constituted  a  mobile,  migra-  \  transient 
tory,  wage-earning  class,  constrained  mainly  by  their  economic 
interest,  and  moving  readily  from  place  to  place  according  to  changes 
in  working  conditions  or  tluctuations  in  the  demand  for  labor.  ...  In 
brief,  the  recent  immigrants  have  no  property  or  other  restraining 
interests  which  attach  them  to  a  community.  .  .  . 

(/)  The  members  of  the  larger  number  of  races  of  recent  entrance  .Attitude  m 
to  the  mines,  mills,  and  factories  as  a  rule  have  been  tractable  and  [{|^py["g^ 
easily  managed.     This  quahty  seems  to  be  a  temperamental  one 


270 


READINGS  IN   AMERICAN  DEMOCRACY 


f 


acquired  through  present  or  past  conditions  of  life  in  their  native 
lands.  When  aroused  by  strikes  or  other  industrial  dissensions,  some 
eastern  European  races  have  displayed  an  inclination  to  foUow  their 
leaders  to  any  length,  .  .  .  but  in  the  normal  Ufe  of  the  mines,  mills, 
and  factories,  the  southern  and  eastern  Europeans  have  exhibited 
a  pronounced  tendency  toward  being  easily  managed  by  employers 
and  toward  being  imposed  upon  without  protest,  which  has  created 
the  impression  of  subserviency.  .  .  . 


Survey  con- 
ducted by 
the  U.S. 
Immigration 
Commission. 


Foreword. 


Predomi- 
nance of  re- 
cent immi- 
grants. 


116.  Living  conditions  in  immigrant  communities  ^ 
The  congestion  of  immigrants  in  large  cities  has  long  been  con- 
sidered one  of  the  most  unfavorable  features  of  the  modem  problem 
of  immigration.  In  191 1  the  United  States  Immigration  Commission 
reported  upon  the  results  of  an  extensive  survey,  conducted  under 
its  direction  for  the  purpose  of  ascertaining  the  character  of  living 
conditions  in  immigrant  communities  in  the  crowded  quarters  of  New 
York,  Chicago,  Philadelphia,  Boston,  Cleveland,  Buffalo  and  Mil- 
waukee. A  summary  of  the  results  of  this  investigation  follows: 
In  view  of  the  fact  that  this  study  is  limited  to  congested  and  poor 
districts  of  the  cities  investigated,  it  is  important  to  keep  in  mind 
that  the  report  does  not  represent  conditions  outside  of  such  dis 
tricts,  and  that  comparisons  by  race  apply  only  to  those  representa- 
tives of  each  race  who  Uve  in  the  poorer  sections  of  the  cities. 

1.  The  search  for  immigrant  races  in  congested  districts  revealed 
the  fact  that  the  population  of  such  districts  consists  predominantly 
of  races  of  recent  immigration.  Races  of  the  older  immigration  and 
their  descendants  are  represented  for  the  most  part  only  by  the  rem- 
nants of  an  earher  population,  whose  economic  progress  has  not 
kept  pace  with  that  of  their  fellows  who  have  moved  to  better 
surroundings.  .  .  . 

2.  Forty-eight  of  every  100  foreign-born  male  heads  of  house- 
holds studied  have  come  to  the  United  States  within  the  past  ten 
years,  and  21  of  every  100  have  come  within  five  years.  .  .  . 

3.  Immigration  to  the  United  States  has  been,  on  the  part  of  male 

heads  of  households  in  the  districts  studied,  largely  a  migration  from 

■  From  the  United  States  Immigration  Commission,  Abstracts  of  Reports,  with 
Conclusions,  etc.     Washington,  1911,  Vol.  i,  pp.  727-730. 


IMMIGRATION  AND  ASSIMILATION  271 

country  to  city  of  people  unfamiliar  with  urban  conditions.    Thirty-   Previous 
nine  of  every  100  who  were  16  years  of  age  or  over  at  the  time  of   condition, 
coming  to  the  United  States  were  engaged  in  farming  in  the  country 
of  their  former  residence.  .  .  . 

4.  Nearly  one-tenth   of  all  the  families  investigated  own  their   Proportion 

homes.  ...  In  general  much  larger  proportions  of  the  older  immi-   "^  ^""^^ 

owners. 

grant  races  than  of  those  of  recent  immigration  arc  home  owners.  .  .  . 

5.  Twenty-six   households   in   every    100   studied   keep   boarders   Boarders 

or   lodgers.  .  .  .  The   proportion   is   smaller   in   native-bom   white  lodgers, 

households  than  in  foreign  households.  Considering  all  immigrants 
regardless  of  race,  it  wiU  be  found  that  the  proportion  of  house- 
holds with  boarders  or  lodgers  is  only  about  half  as  great  among 
immigrants  who  have  Mved  in  the  United  States  ten  years  or  more 
as  among  the  more  recent  immigrants. 

6.  Forty-five  in  every  100  of  the  homes  studied  are  kept  in  good   Cleanliness, 
condition,  and  84  in  every  100  are  kept  in  either  good  or  fair  con- 
dition. ...  As  a  rule  the  races  of  the  older  immigration  have  a 

higher  proportion  of  well-kept  apartments  than  have  the  recent 
immigrant  races,  but  in  general  the  proportion  of  well-kept  homes 
is  high.  The  neglected  appearance  of  a  great  many  of  the  streets 
is  a  result  of  the  indifference  on  the  part  of  the  city  authorities.  ... 
In  frequent  cases  the  streets  are  dirty  while  the  homes  are  clean. 

7.  Sanitary    equipment    depends    primarily    on    the    city.      The   sanitation, 
districts  investigated  in  Philadelphia  and  Cleveland  make  the  least 
satisfactory  showing  in  this  respect.  .  .  . 

8.  In  the  households  investigated  the  average  number  of  persons   and  con- 

per  100  rooms  is  134,  and  per  100  sleeping  rooms  2^2.     The  cities   Sfstion  m 

^  ""  the  cities 

may  be  arranged  in  regard  to  crowding  in  the  following  order:  Boston,   sur\eyed. 

144  persons  per  100  rooms;  Philadelphia.  141;  Cleveland,  140;  New 
York,  139;  Buffalo,  133;  Chicago,  126;  Milwaukee,  114.  Density 
of  population,  or  congestion  per  acre,  is  not  the  only  factor  in  deter- 
mining the  degree  of  crowding  per  room.  Well- regulated  tenement 
houses  are  better  adapted  to  the  needs  of  a  crowded  city  than  are 
private  homes  converted  for  the  use  of  several  families.  Enlightened 
tenement-house  laws,  effectively  enforced,  minimize  the  unavoidable 
evils  which  arise  from  the  crowding  together  of  large  numbers  of 
families.  .  .  . 


272 


READINGS  IN  AMERICAN  DEMOCRACY 


Rents.  9-   Households  of  immigrants  as  compared  with  native-bom  white 

households  pay,  on  the  whole,  higher  rents  per  room  but  considerably 
lower  rents  per  person.  The  lower  rents  per  person  among  immi- 
grants are,  of  course,  due  to  the  greater  number  of  persons  per  room. 
The  larger  size  of  the  households  is  due  in  considerable  degree  to 
the  greater  number  of  boarders  and  lodgers  among  immigrants.  .  .  . 

Literacy.  10.   A  great  majority  of  foreign-bom  male  heads  of  households 

who  came  to  the  United  States  before  reaching  14  years  of  age  are 
now  able  to  speak  EngUsh  and  to  read  and  write.  Practically  all 
persons  native-bom  of  foreign  father  among  those  studied  speak  the 
English  language  and  are  able  to  read  and  write.  .  .  . 


History  of 
the  literacy 
test. 


The  Act  of 
1917. 


Essence  of 
the  literacy 
test  provi- 
sion. 

Exception 
in  the  case 
of  certain 
near  rela- 
tives. 


117.   The  literacy  test^ 

The  number  and  complexity  of  the  problems  to  which  immigration 
has  given  rise,  has  repeatedly  raised  the  question  of  the  exclusion  of 
certain  classes  of  immigrants.  After  the  Civil  War  there  was  an 
increasing  demand  that  illiterate  immigrants  be  excluded  from  the 
United  States.  Between  1897  and  191 5  Congress  passed  three  different 
bills  embodying  a  Hteracy  test  for  immigrants,  but  each  of  these 
was  vetoed  by  the  President,  the  first  by  Cleveland  in  1897,  the  second 
by  Taft  in  19 13,  and  the  third  by  Wilson  ini9i5.  Ini9i7,  however, 
a  comprehensive  immigration  law  was  enacted,  and  in  the  third 
section  of  this  statute  there  is  provision  for  a  hteracy  test,  as  follows: 

[It  is  provided]  that  after  three  months  from  the  passage  of  this 
Act,  in  addition  to  ahens  who  are  by  law  now  excluded  from  admission 
into  the  United  States,  the  following  persons  shall  also  be  excluded 
from  admission  thereto,  to  wit: 

All  ahens  over  sixteen  years  of  age,  physically  capable  of  reading, 
who  cannot  read  the  English  language,  or  some  other  language  or 
dialect,  including  Hebrew  or  Yiddish: 

Provided,  That  any  admissible  aUen,  or  any  alien  heretofore  or 
hereafter  legally  admitted,  or  any  citizen  of  the  United  States,  may 
bring  in  or  send  for  his  father  or  grandfather  over  fifty-five  years 
of  age,  his  wife,  his  mother,  his  grandmother,  or  his  unmarried  or 
widowed  daughter,  if  otherwise  admissible,  whether  such  relative 
can  read  or  not ;  and  such  relative  shaU  be  permitted  to  enter. 
*  From  the  Statutes  oj  the  United  States,  Immigration  Law  oj  igiy,  Section  3.    ; 


IMMIGRATION  AND   ASSIMILATION  273 

That  for  the  purpose  of  ascertaining  whether  aUens  can  read  the  The  nature 

of  the  lit 
acy  test. 


immigrant  inspectors  shall  be  furnished  with  slips  of  uniform  size,   °  ^  "^  ^^^^' 


prepared  under  the  direction  of  the  Secretary  of  Labor,  each  con- 
taining not  less  than  thirty  nor  more  than  forty  words  in  ordinary 
use,  printed  in  plainly  legible  type  in  some  one  of  the  various  languages 
or  dialects  of  immigrants.  Each  ahen  may  designate  the  particular 
language  or  dialect  in  which  he  desires  the  examination  to  be  made, 
and  shall  be  required  to  read  the  words  printed  on  the  sUp  in  such 
language  or  dialect. 

That  the  following  classes  of  persons  shall  be  exempt  from  the   Classes 
operation  of  the  illiteracy  test,  to  wit:  from^the 

All  aUens  who  shall  prove  to  the  satisfaction  of  the  proper  immi-  operation  of 
gration  officer  or  to  the  Secretary  of  Labor  that  they  are  seeking  ad-  *■  '^  ^^^^' 
mission  to  the  United  States  to  avoid  religious  persecution  in  the 
country  of  their  last  permanent  residence  .  .  .  ;  all  ahens  who 
have  been  lawfully  admitted  to  the  United  States  and  who  have 
resided  therein  continuously  for  five  years  and  who  return  to  the 
United  States  within  six  months  from  the  date  of  their  departure 
therefrom;  all  aliens  in  transit  through  the  United  States;  all  ahens 
who  have  been  lawfully  admitted  to  the  United  States  and  who  later 
shall  go  in  transit  from  one  part  of  the  United  States  to  another 
through  foreign  contiguous  territory:  -Provided,  That  nothing  in  this 
Act  shall  exclude,  if  otherwise  admissible,  persons  convicted,  or 
who  teach  or  advocate  the  commission,  of  an  offense  purely 
political.  .  .  . 

118,   Why  California  objects  to  the  Japanese  ^ 

The  problem  of  Japanese  immigration  is  of  very  recent  origin,  and   Significance 

in  one  sense  is  acute  only  on  the  Pacific  Coast.    Nevertheless,  this  ^^'Jgr^^'Ji^ 

phase  of  the  general  immigration  question  is  a  matter  of  national 

concern,  involving  not  only  economic,  social  and  political  problems 

at  home,  but  also  relations    between    the    governments    of    Japan 

and  the  United  States.     At  present  heavy  restrictions  are  imposed 

upon  the  immigration  of  Japanese  into  the  United  States,  and  it 

seems  Ukely  that  such  restrictions  will  be  continued.    In  the  following 

'  From  the  American  Academy  of  Political  and  Social  Science,  Annals.    Vol. 
xcm.    Philadelphia,  1921;  pp.  16-17. 


274 


READINGS   IN  AMERICAN  DEMOCRACY 


Necessity  of 

prompt 

action. 


The  eco- 
nomic ob- 
jection to 
the  Japa- 
nese. 


The 

racial 

question. 


Exclusion  of 
the  Japanese 
a  matter 
of  self-preser- 
vation. 


selection,  Calitornia's  objections  to  the  Japanese  invasion  are  summed 
up  by  Hon.  James  D.  Phelan,  United  States  Senator  from  California; 

The  solution  of  the  Japanese  problem,  growing  out  of  the  Cali- 
fornia situation,  requires  prompt  action  by  Congress.  It  is  charged 
with  danger.  The  people  of  Japan,  as  well  as  the  people  of  the 
eastern  states,  should  be  informed  in  a  spirit  of  frankness.  There 
should  be  no  misunderstanding,  because  misunderstandings  breed 
trouble. 

Great  numbers  of  Japanese,  men  and  women,  are  in  CaUfomia, 
and  are  acquiring  large  tracts  of  agricultural  land.  The  state  law 
forbade  ownership  by  aUens  inehgible  to  citizenship,  but  the  Japanese 
took  deeds  in  the  name  of  their  children  bom  on  the  soil,  or  in  the  name  ; 
of  corporations,  and  so  circumvented  the  intent  of  the  law.  The  I' 
initiative  law  adopted  at  the  recent  November  elections  will,  it  is 
hoped,  prevent  this  circumvention,  thus  making  further  acquisition 
impossible. 

The  Japanese  also  lease  lands  and  work  for  a  share  of  the  crop, 
and  when  thus  working  for  themselves  are  impossible  competitors, 
and  drive  the  white  settlers,  whose  standards  of  hving  are  different, 
from  their  farms.  The  white  farmer  is  not  free  from  cupidity  when 
tempted  by  Japanese  to  sell  out  at  high  prices,  and  they  do  sell  out 
and  disappear.  The  state,  therefore,  is  obhged  as  a  simple  matter 
of  self-preservation  to  prevent  the  Japanese  from  absorbing  the 
soil,  because  the  future  of  the  white  race,  American  institutions,  and 
western  civihzation  are  put  in  peril.  The  Japanese  do  not  assimilate 
with  our  people  and  make  a  homogeneous  population,  and  hence  they 
cannot  be  naturalized  and  admitted  to  citizenship. 

Therefore,  the  question  is  principally  economic,  and  partly  racial. 
Japan  herself  excluded  Chinese  in  order  to  preserve  her  own  people, 
and  that  is  what  California,  Austraha  and  Canada  are  doing.  Jap- 
anese statesmen  must  surely,  for  these  reasons,  acquit  Americans 
of  race  prejudice.  We  are  willing  to  receive  diplomats,  scholars  and 
travelers  from  Japan  on  terms  of  equahty,  but  we  do  not  want  her 
laborers.  We  admire  their  industry  and  cleverness,  but  for  that 
very  reason,  being  a  masterful  people,  they  are  more  dangerous. 
They  are  not  content  to  work  for  wages,  as  do  the  Chinese,  who  are 
excluded,  but  are  always  seeking  control  of  the  farm  and  of  the  crop. 


IMMIGRATION  AND   ASSIMILATION  275 

Immigration  and  naturalization  are  domestic  questions,  and  no   The  atti- 
tude of 
California. 


people  can  come  to  the  United  States  except  upon  our  own  terms.   ^"^"^  °^ 


We  must  preserve  the  soil  for  the  Caucasian  race.  The  Japanese, 
by  crowding  out  our  population,  produce  disorder  and  bolshevism 
among  our  own  people,  who  properly  look  to  our  government  to  pro- 
tect them  against  this  destructive  competition.  Cahfornia,  by  acting 
in  time,  before  the  evil  becomes  even  greater,  expects  to  prevent 
conflict  and  to  maintain  good  relations  with  the  Japanese  Government. 

The  American  Government  rests  upon  the  free  choice  of  the  people,   The  purpose 
and  a  large  majority  of  the  people  are  engaged  in  farming  purstiits.   °^  °"'". 
They  form  the  backbone  of  every  country  —  the  repository  of  morals,    policy, 
patriotism  and  thrift,  and  in  time  of  their  country's  danger  spring 
to  its  defense.    They  represent  its  prosperity  in  peace  and  its  security 
in  war.    The  soil  can  not  be  taken  from  them.    Their  standards  of 
living  can  not  suffer  from  deterioration.    Their  presence  is  essential 
to  the  Hfe  of  the  state.    I  therefore  urge  the  Japanese  Government 
and  people  to  put  themselves  In  our  place  and  to  acquit  us  of  any 
other  purpose  in  the  exclusion  of  oriental  immigration  than  the 
preservation  of  our  national  life.  .  .  . 

The  people  of  Asia  have  a  destiny  of  their  own.    We  shall  aid  them   Conclusion, 
by  instruction  and  example,  but  w'e  can  not  suffer  them  to  over- 
whelm the  civilization  which  has  been  estabUshed  by  pioneers  and 
patriots  and  which  we  are  dutifully  bound  to  preserve. 


119.   Americanizing  the  immigrant  ^ 

Of  recent  years  the  assimilation  or  Americanization  of  the  immigrant    Growing 
has  been  of  rapidly  increasing  importance.    This  is  particularly  true   '™Portance 
of  the  period  which  has  elapsed  since  the  outbreak  of  the  World  War   lem  of  assim- 
in  1914.    That  struggle  called  our  attention  to  the  danger  of  toler-   ''^^'•^"• 
ating  large  masses  of  unassimilated  foreigners  in  our  midst,  and  stimu- 
lated increased  interest  in  the  problem  of  Americanization.     In  the 
following  passage,  the  United  States  Bureau  of  Education  sums  up 
some  of   the  factors  involved   in  an  Americanization  program  for 
individual  states: 

*  From  the  United  States  Department  of  the  Interior,  Bureau  of  Education, 
Bulletin,  igig,  No.  77.    Slate  Americanization,  Washington,  1020;  pp.  24-26. 


276 


READINGS  IN  AMERICAN  DEMOCRACY 


The  place 
of  local 
communities 
in  Ameri- 
canization 
work. 


The  role  of 

the  state 
chamber  of 
commerce, 

labor  organ- 
izations, 


associations 
of  manufac- 
turers. 


educational 
agencies, 


associations 
of  women, 


and  other 

orgamza- 

tions 


The  great  task  of  educating,  protecting,  and  assimilating  oui 
foreign-bom  people  must  be  performed  by  the  communities  where 
these  people  live  and  work.  These-  communities  must  be  organized 
and  set  to  work.  It  should  be  unnecessary  to  create  any  new  ma- 
chinery within  a  community,  for  every  community  has  already  of 
its  own  initiative  formed  organizations  and  societies  which  are  ready 
for  the  work.  The  task  is  to  bring  them  together  in  one  united 
force.  .  .  . 

The  state  chamber  of  commerce,  wherever  it  exists,  should  be  a 
powerful  factor  in  bringing  back  of  the  state  program  the  influential 
and  representative  bodies  which  compose  its  membership.  .  ,  . 

The  state  federation  of  labor,  with  its  hundreds  of  local  unions, 
is  a  necessary  factor,  for  through  the  unions  direct  influence  may  be 
brought  to  bear  upon  the  non-English-speaking  workmen  to  enter 
the  classes  wherever  they  may  be  formed.  .  .  . 

The  state  association  of  manufacturers  represents  a  group  which 
is  indispensable  in  the  work  of  Americanization.  The  active  support 
and  complete  sympathy  of  the  manufacturers  must  be  secured  by 
each  community.  .  .  . 

The  state  departments  of  education,  of  health,  of  industrial  rela- 
tions, and  those  other  bureaus  which  are  concerned  in  the  broader 
aspects  of  Americanization  should  of  course  be  brought  into  the  plans. 
The  state  university,  through  its  education  extension  work,  can 
be  of  very  great  assistance  not  only  in  the  educational  phases  of  the 
.  work  but  in  the  social  aspects  as  well.  Through  its  traveling  libraries, 
film  service,  community  center,  and  other  work,  the  extension  division 
can  directly  assist  the  communities  in  practical  Americanization. 

The  state  federation  of  women's  clubs  and  the  women's  patriotic 
organizations  can  start  a  great  force  at  work  in  every  community 
in  the  state,  and  they  should  be  brought  completely  into  the  plans 
of  the  state  committee. 

The  special  educational  branches,  such  as  home  economics,  kinder- 
garten, and  school  nursing,  can  through  their  state  leaders  be  of 
material  assistance.  The  state  organizations  of  the  doctors,  visiting 
nurses,  lawyers,  bankers,  dentists,  architects,  and  others  can  not 
only  render  direct  assistance,  but  they  can  in  turn  spur  their  individual  , 
members  to  proffer  their  help  to  the  local  committees. 


IMMIGRATION  AND   ASSIMILATION  277 

The  state  library  association,  the  state  Young  Men's  Christian   and  associ- 
Association,    Young    Women's    Christian    Association,    Knights    of   ^^^'^^s- 
Columbus,  Young  Men's  Hebrew  Association,  and  other  semi-public 
institutions,  the  Boy  and  Girl  Scouts,  the  social  workers,  the  churches 
and  the  church  organizations  —  all  of  these  should  be  interested  in 
the  work. 

Of  an  importance  which  is  very  great  are  the  racial  organizations. 
Many  of  the  local  racial  societies  are  formed  into  state  groups,  and 
if  the  interest,  sympathy,  and  support  of  the  latter  are  once  secured, 
that  of  the  former  will  naturally  follow. 

In  bringing  all  of  these  active  agencies  into  a  common  program,   Necessity  of 
great  tact  on  the  part  of  the  state  committee  or  director  will  be  re-   ™°[  '"^' 
quired.     Many  of  these  agencies  are  already  at  work  in  the  field. 
It  will  not  be  an  easy  task  to  incorporate  them  into  a  common  pro- 
gram,  but  it   can  be  done.  .  .  . 

With  vision,  sympathy,  tolerance,  and  a  sincere  friendliness  toward  The  goal  of 
the  foreign-born  by  those  in  authority  within  the  States,  with  ade-  2aTion'^^'^^' 
quate  funds  for  the  provision  of  educational  facilities  for  their  needs, 
and  with  earnest  and  cordial  cooperation  on  the  part  of  all  the  power- 
ful forces  of  the  Nation,  State,  and  community,  America  can  within 
a  decade  weld  all  of  its  various  peoples  into  one  great,  harmonious, 
homogeneous  whole  and  the  words  of  its  national  motto  be  at  last 
achieved  —  "One  out  of  many." 

120.   A  proposed  immigration  policy  ^ 

Following  the  conclusion  of  the  World  War,  there  was  a  growing   Question  of 
demand  for  a  definite  immigration  policy  on  the  part  of  the  United   iJon^Xlicy^ 
States.    By  many  it  was  declared  that  immigration  to  America,  inter-   after  the 
rupted  by  the  war,  would  recommence  in  such  volume  as  to  render 
impossible  the  assimilation  of  the  newcomers.     While  uncertain  as 
to  the  volume  of  post-war  immigration,  many  others  admitted  that 
the  country  could  not  effectively  meet  its  post-war  adjustment  prob- 
lems unless  immigration  were  drastically  restricted.    In  1921,  when 
the  question  of  an  immigration  poUcy  was  being  generally  discussed, 

'  From  the  National  Committee  for  Constructive  ImmiRration  Legislation, 
"rogram.  Printed  in  the  Annals  of  the  American  .'\cademy  of  Political  and  Social 
Science,  Vol.  XCUi.     Philadelphia,  1921;  pp.  213-214. 


278 


READINGS  IN  AMERICAN  DEMOCRACY 


Attitude  of 
the  Na- 
tional Com- 
mittee for 
Constructive 
Immigration 
Legislation. 


What  is 
needed. 


Elements  in 
the  pro- 
posed pro- 
gram. 

Justice. 


Admittance 
of  only  as 
many  immi- 
grants as 
can  be 
American- 
ized. 

Basis  for 
restriction. 


Self-pro- 
tection. 


the  National  Committee  for  Constructive  Immigration  Legislation 
proposed  the  following  immigration  policy: 

[The  Committee]  advocates  the  scientific  regulation  of  immigra- 
tion. It  does  not  propose  either  the  complete  stoppage  of  immi- 
gration or  its  unlimited  admittance.  It  urges  that  the  amount  of 
immigration  which  may  be  admitted  wisely  in  any  given  year  depends 
on  facts  which  are  not  generally  known,  and  which  can  not  be  known 
until  patient,  scientific  investigation  has  been  made  of  two  distinct 
sets  of  factors;   one  social,  the  other  economic. 

Neither  Congress  nor  the  people  as  a  whole  has  at  present  adequate 
knowledge  on  which  to  base  a  hard  and  fast  immigration  law  that 
would  be  really  wise  and  safe  for  us,  or  fair  and  friendly  to  the  peoples 
clamoring  for  entrance. 

What  is  needed  is  a  law  that  will  define  certain  principles  for  the 
guidance  of  decisions,  that  will  set  up  the  requisite  machinery  for 
getting  the  needed  facts;  and  that  will  provide  an  agency  for  evalu- 
ating those  facts  and  for  applying  the  principles  in  the  hght  of  the 
facts,  so  that  the  immigration  allowed  may  be  steadily  adjusted  to 
the  ever-changing  economic,  industrial  and  social  conditions. 

We  contend  that  this  policy,  if  adopted,  will  create  an  automatic 
barometer  of  admissibihty  of  assimilable  immigration. 

The  pohcy  and  program  advocated  by  the  National  Committee 
are  based  upon  and  embody  the  following  General  Principles: 

1.  That  all  legislation  dealing  with  immigration  and  with  resident 
aliens  should  be  based  on  justice  and  good-will  as  well  as  on  economic 
and  poUtical  considerations. 

2.  That  the  United  States  should  so  regulate,  and,  where  necessary, 
restrict  immigration  in  order  to  provide  that  only  so  many  immi- 
grants of  each  race  or  people  may  be  admitted  as  can  be  wholesomely 
Americanized. 

3.  That  the  number  of  those  individuals  of  each  race  or  people 
already  in  the  United  States  who  have  already  become  i\mericanized 
affords  the  best  practicable  basis  of  measuring  the  further  immi- 
gration of  that  people. 

4.  That  American  standards  of  living  should  be  protected  from 
the  dangerous  economic  competition  of  immigrants,  whether  from 
Europe  or  from  Asia. 


IMMIGRATION  AND   ASSIMILATION  279 

5.  That  no  larger  amount  of  immigration  of  any  given  people 
should  be  admitted  than  can  find  steady  employment  and  can  fit 
wholesomely  into  our  social,  poHtical  and  economic  life. 

6.  That  such  provisions  should  be  made  for  the  care,  education  and   Attitude 
distribution  of  aliens  who  come  to  hve  permanently  among  us  as   '^"^^^''^ 

aliens  pei- 

will  promote  their  rapid  and  genuine  transformation  into  American   manently 

citizens  and  thus  maintain  intact  our  democratic  institutions  and   ['^^I'^cnt 

here, 
national  unity. 

7.  That  the  standards  of  naturalization  should  be  raised  so  as  to   Standards 
include  among  other  requirements  at  least  the  abiUty  to  read  an   ^^  naturali- 
ordinary  American  newspaper,  some  real  knowledge  of  the  histoiy 

of  the  United  States,  and  an  intelligent  acceptance  of  the  practices 
and  ideals  of  our  democracy. 

8.  That  under  careful  regulation  as  to  numbers  and  quahfications   Citizenship, 
of  permitted  immigration  from  the  various  peoples,  the  privilege  of 
acquiring  citizenship  by  those  who  are  lawfully  here  and  are  to  re- 
main a  permanent  part  of.  our  population  should  then  be  granted 

to  all  who  actually  quaUfy,  regardless  of  race.  .  .  . 


Questions  on  the  foregoing  Readings 

1.  Which  aspect  of  the  immigration  problem  is    probably  the  most 

fundamental? 

2.  What  effect   does   lack   of   funds   have   upon   the   occupations   of 

recent  immigrants? 

3.  Explain  what  is  meant  by  saying  that  the  recently  arrived  immi- 

grant often  has  a  low  standard  of  living. 

4.  To   what  extent  is  it   true   that  the  attitude   of   manj^  recentlj' 

arrived  immigrants  toward  their  employers  is  one  of  subserviency? 

5.  Name   the  cities  in  which  the  U.  S.  Immigration  Commission  con- 

ducted  a   survey   of    the   living   conditions   among    immigrant 
groups. 
15.   Discuss  the  prevalence  of  boarders  and  lodgers  in  the  households 
of  recent  immigrants. 

7.  What  can  be  said  as  to  the  cleanliness  of  the  homes  of  the  immi- 

grant groups  studied  by  the  Commission? 

8.  Compare   the   various   cities   surveyed   by   the   Commission   with 

respect  to  congestion  in  immigrant  quarters. 

9.  Name  three  Presidents  who  vetoed  immigration    bills  embodying 

a  literacy  test. 


28o  READINGS  IN  AMERICAN  DEMOCRACY 

10.  What,  in  essence,  is  the  provision  for  a  literacy  test  in  the  immi- 

gration law  of  1917? 

11.  Name  some  classes  which  are  excluded  from  the  operation  of  the 

test. 

12.  What  is  the  special  significance  of  the  problem  of  Japanese  immi- 

gration? 

13.  Discuss  the  economic  objection  to  Japanese  immigration. 

14.  What  is  the  racial  argument  against  Japanese  immigration? 

15.  What  is  the  attitude  of  California  toward  the  Japanese  question? 

16.  What  is  the  prime  purpose  of  our  policy  of  restricting  the  immi- 

gration of  Japanese  to  this  country? 

17.  What  effect  did  the  World  War  have  upon  the  question  of  Ameri- 

canization? 

18.  Name  some  ways  in  which  various  state  and  local  agencies  could 

aid  in  the  work  of  Americanization. 

19.  What  is  the  goal  of  Americanization? 

20.  Discuss  the  movement  toward  the  formulation  of  an  immigration 

policy. 

21.  What  is  the  attitude  toward  immigration  of  the  National  Com- 

mittee for  Constructive  Immigration  Legislation? 

22.  Enumerate  some  of  the  elements  contained  in  the  program  pro- 

posed by  this  Committee. 

23.  What  is  the  attitude  of  the  Committee  toward  naturalization  and 

citizenship? 


CHAPTER  XXI 

CRIME   AND    CORRECTION 

121.   Taft  on  the  defects  of  criminal  procedure  ' 

It  is  a  notorious  fact  that  procedure  in  the  courts  of  the  United   Legal  pro- 
States  is  so  defective  as  to  impede  rather  than  to  guarantee  justice,   ''f^  "ff  ."^  . 
No  one  has  more  keenly  realized  this  fact,  and  no  one  has  more   States  is 
frankly  expressed  his  disapproval  of  the  existing  situation,   than    ^^^y- 
WiUiam  H.  Taft,  Chief  Justice  of  the  United  States  Supreme  Court. 
In  April,  1908,  the  Chief  Justice,  then  Secretary  of  War,  dehvered 
an  address  before  the  Civic  Forum  in  New  York  City,  in  which  he 
pointed  out  the  delays  and  defects  in  the  enforcement  of  law  in 
this  country.    That  part  of  his  address  which  applies  with  particular 
force  to  criminal  procedure  follows: 

If  one  were  to  be  asked  in  what  respect  we  had  fallen  furthest  Serious 
short  of  ideal  conditions  in  our  whole  government,  I  think  he  would 
be  justified  in  answering,  in  spite  of  the  glaring  defects  in  our  system 
of  raunicipal  government,  that  it  is  in  our  failure  to  secure  expedition 
and  thoroughness  in  the  enforcement  of  pubHc  and  private  rights 
in  our  courts.  I  do  not  mean  to  say  that  the  judges  of  the  courts 
are  lacking  in  either  honesty,  industry,  or  knowledge  of  the  law,  but 
I  do  mean  to  say  that  the  machinery  of  which  they  are  a  part  is  so 
cumbersome  and  slow  and  expensive  for  the  Utigants  —  pubUc  and 
private  —  that  the  whole  judicial  branch  of  the  government  faUs 
in  a  marked  way  to  accomplish  certain  of  the  purposes  for  wliich 
it  was  created.  ... 

When  we  come  to  the  administration  of  criminal  law  and  llac  asser-   Our  crim- 
tion  of  pubUc  right,  which  have  a  more  direct  bearing  upon  the    j"^re^a™dfs- 
welfare  of  the  whole  people  than  the  settlement  of  private   rights,   grace  to 
I  he  injurious  delays  caused  by  the  procedure  provided  by  legislative 

•  From  William  Howard  Taft,  Address  delivered    before  the  Civic  Fonun,  in 
Carnegie  Hall,  New  York  City,  April  28,  1908. 

281 


nature  of 
this  evil. 


civilization. 


282 


READINGS   IN  AMERICAN  DEMOCRACY 


Court  pro- 
cedure in 
the  United 
States  and 
England 
contrasted. 


How  the 
criminal 
may  escape 
punishment. 


The  jury 
problem. 


act  are  greatly  accentuated.  No  one  can  examine  the  statistics  of 
crime  in  this  country  and  consider  the  relatively  small  number  of 
prosecutions  which  have  been  successful,  without  reahzing  that  the 
administration  of  the  criminal  law  is  a  disgrace  to  our  civiHzation.  .  .  , 

We  have,  as  is  well  understood,  certain  constitutional  restrictions 
as  to  the  procedure  in  criminal  cases,  which  offer  protection  to  the 
accused  and  present  difficulties  in  the  proof  of  his  guilt.  But  these 
obtain  as  well  in  the  EngUsh  courts  as  in  our  own,  and  their  existence 
does  not  offer  a  reason  for  the  delays  from  which  we  suffer,  for  such 
delays  do  not  exist  in  the  administration  of  justice  in  England. 
A  murder  case  which  in  this  country  is  permitted  to  drag  itself  out 
for  three  weeks  or  a  month,  in  England  is  disposed  of  in  a  day,  two 
days,  or,  at  the  most,  three  days,  —  certainly  in  less  than  one-fifth 
the  time.  This  is  because  the  English  judges  insist  upon  expedition 
by  counsel,  cut  short  useless  cross-examinations,  and  confine  the  evi- 
dence to  the  nub  of  the  case.  .  .  .  Under  such  practice,  it  would 
be  possible  for  the  prosecuting  attorneys  to  clear  their  dockets;  as 
it  is  now  they  are  utterly  unable  to  do  so.  i 

At  the  present  time,  in  our  larger  cities,  a  man  who  is  indicted 
and  has  means  with  which  to  secure  bail  is  released  on  bond,  unless 
he  is  confined  for  murder  in  the  first  degree.  The  pressure  upon  the 
prosecuting  officers  is  for  the  trial  of  those  who  are  in  jail  and  unable 
to  give  bail,  and  as  a  result  of  the  delays  I  have  mentioned,  jail 
cases  are  protracted  and  the  trial  of  those  who  are  released  on  bail 
is  postponed  oftentimes  to  the  indefinite  future,  the  evidence  dis- 
appears, newer  and  more  sensational  cases  come  on,  and  ultimately 
nolles  are  entered  and  the  indicted  man  escapes.  .  .  . 

Another  cause  of  the  inefficiency  in  the  administration  of  the 
criminal  law  is  the  difficulty  of  securing  jurors  properly  sensible  of 
the  duty  which  they  are  summoned  to  perform.  In  the  extreme 
tenderness  which  the  state  legislatures  exhibit  toward  persons  accused 
as  criminals,  and  especially  as  murderers,  they  allow  peremptory 
challenges  to  the  defendant  far  in  excess  of  those  allowed  to  the 
prosecution.  In  my  own  state  of  Ohio,  for  a  long  time,  in  capital 
cases,  the  law  allowed  the  prosecution  two  peremptory  challenges 
and  the  defendant  tvv^enty-three.  This  very  great  discrimination 
between  the  two  sides  of  the  case  enabled  the  defendant's  counsel 


CRIME  AND    CORRECTION  283 

to  eliminate  from  the  panel  every  man  of  force  and  character,  and 
to  assemble  a  collection  in  the  jury  box  of  nondescripts  of  no  character, 
who  were  amenable  to  every  breeze  of  emotion,  however  maudlin 
or  irrelevant  the  issue.  .  .  . 

Another  reason  for  delays  in  the  enforcement  of  criminal  law  is  Abuse  of 
to  be  found  in  the  right  of  repeated  appeals  which  are  given  in  criminal  ^^^  "*'''^'^  ^^ 
cases.  The  code  of  evidence,  with  its  complicated  rules  and  numerous 
technical  statutory  hmitations  designed  to  favor  the  defendant,  are 
all  used  as  a  trap  to  catch  the  trial  court  in  error,  however  technical, 
upon  which,  in  appellate  proceedings,  a  reversal  of  the  judgment 
of  the  court  below  may  be  obtained.  The  rule  which  generally  ob- 
tains in  this  country  is,  that  any  error,  however  shght,  must  lead 
to  a  reversal  of  the  judgment,  unless  it  can  be  shown  affirmatively 
that  it  did  not  prejudice  the  defendant.  The  disposition  on  the 
part  of  the  courts  to  think  that  every  provision  of  every  rule  of  the 
criminal  law  is  one  to  be  strictly  construed  in  favor  of  the  defendant, 
[leads  to  undue  delay  in  the  criminal  trial.]  .  .  , 


122.   Results  of  the  public  defender  movement  ^ 

These  glaring  defects  in  our  criminal  procedure  are  becoming  better   Significance 

known  to  the  pubhc  at  large,  but  as  yet  the  reform  of  such  procedure   °^  ^^';  P"'^" 

he  defender 
has  proceeded  slowly  and  with  difficulty.      Here  and  there,  however,   movement. 

I  the  efforts  of  constructive  reformers  have  been  attended  with  a 
1  considerable  degree  of  success.  A  notable  development  is  the  pubHc 
defender  movement,  which  began  as  recently  as  1913,  but  which  is 
already  sufficiently  important  to  warrant  serious  attention  and  study. 
The  results  of  the  movement,  which  aims  to  provide  an  honest  and 
capable  pubhc  attorney  to  defend  impoverished  or  ignorant  defend- 
ants, are  summed  up  by  Reginald  Heber  Smith,  of  the  Massachusetts 
Bar,  in   the  following   language: 

It  is  unquestionable  that  the  existence  of  the  defender  must  prevent    The  de- 
some  unjust  convictions.     We  believe  that  by  a  jury  verdict  after   ^'^^'^'^^  '^'-"'P^ 
.  .  ^        J     ^  jQ  secure  a 

a  fair  trial  we  approximate  the  truth  as  closely  as  is  possible.     The   fair  trial. 

*  From  the  Carnegie  Foundation  for  the  Advancement  of  Teaching,  Bulletin 
No.  13.  (^Justice  and  the  Poor,  by  Reginald  Heber  Smith.)  New  York,  iqiq; 
pp.  ;ig-i23. 


284 


READINGS  IN  AMERICAN   DEMOCRACY 


The  de- 
fender be- 
comes a 
specialist  in 
criminal 
law,  and 
this  re- 
acts to  the 
benefit  of 
poor  de- 
fendants. 


The  public 
defender 
method  rel- 
atively 
economical. 


The  public 
defender 
raises  the 
tone  of  the 
criminal 
trial, 


I 


defender  reduces  the  danger  of  error   to  a  minimum  because  he 
guarantees  a  fair  trial  to  every  one.  .  .  . 

The  case  for  the  defender  rests  primarily  on  the  fact  that  such  an 
office  performs  an  essential  function  in  the  administration  of  justice 
more  efficiently,  more  economically,  and  with  aU-round  better  results 
than  any  other  plan.  The  increased  efficiency  can  readily  be  appre- 
ciated. .  .  .  The  attorney  who  devotes  aU  his  time  to  criminal  work 
is  more  famihar  with  the  law  and  the  details  of  procedure  than  the 
attorney  who  is  occasionally  assigned  a  case.  Centrahzation  of  work 
makes  speciaHzation  possible.  The  office  learns  the  easiest  method 
of  conducting  the  work,  it  develops  its  own  staff  of  investigators, 
and  knows  the  proper  authorities  to  consult  as  points  arise.  The 
defender  becomes  an  expert  in  criminal  law.  .  .  . 

A  defender's  office,  whether  supported  by  the  state  or  by  con- 
tributions, obviously  costs  more  than  assigned  counsel  who  are 
paid  nothing.  If,  however,  adequate  representation  is  to  be  had, 
assigned  counsel  must  be  paid  and  their  expenses  reimbursed,  so  that 
the  true  comparison  to  determine  the  more  economical  method  is 
between  the  defender  and  paid  assigned  counsel.  During  the  first 
ten  months  the  expense  of  the  criminal  department  of  the  Los  An- 
geles office  was  about  $8400;  during  1915,  $9400;  and  during  1916, 
$11,161.40.  The  average  cost  per  case  was  respectively  $23.86, 
$20.88,  and  $21.38,  or  a  flat  average  for  three  years  in  1324  cases 
of  $21.87  per  case.  In  the  superior  court  for  Milwaukee,  where 
assigned  counsel  are  paid,  the  expense  over  a  period  of  four  years 
ending  1913  averaged  $4934.25  per  year  for  121  assignments  each 
year,  or  an  average  cost  per  case  of  $40.86.  It  is  probably  not 
inaccurate  to  estimate  that  to  secure  adequate  representation  for 
indigent  prisoners  by  paying  assigned  counsel  is  twice  as  expensive 
as  by  the  defender  plan.  .  .  . 

[A  further  result  of  the  pubHc  defender  movement  is  that]  the 
whole  tone  of  criminal  trials  has  been  raised.  ...  In  both  Los 
Angeles  and  New  York  the  defender  has  the  cordial  support  of  the 
district  attorney.  The  defense  is  conducted  without  resort  to  trickery 
or  dehberate  falsehood,  and  the  knowledge  of  this  fact  permits  the 
prosecution  to  adopt  an  equally  high  plane  of  conduct.  ... 

That  the  defender  tries  his  cases  on  their  merits  without  resort 


CRIME   AND   CORRECTION  285 

to  technical  objections  taken  chiefly  for  purposes  of  delay,  and  that   and 


saves 


tune  m 
criminal 


this  course  saves  time  and  expense  to  the  state  without  prejudice 

to  the  defendants,  is  borne  out  by  such  figures  as  are  available,   procedure. 

[In  Los  Angeles  in  19 14  the  time  saved  by  the  defender  was  on]  an 

average  slightly  more  than  half  a  day  per  case  tried.    From  this  it 

is  easy  to  see  that  in  the  course  of  fifty  or  one  hundred  trials  quite 

a  saving  is  effected  when  it  is  remembered  that  the  daily  cost  to  the 

state  of  a  criminal  jury  trial  is  from  one  hundred  and  fifty  to  two 

hundred  dollars.  .  .  . 

123.   Tendencies  in  the  juvenile  court  movement  ^ 
Toward  the  end  of  the  last  century  there  was  a  growing  feeling   Why  the 

among  students  of  crime  that  the  juvenile  offender  ought  not  to  be   i"^''^'^^'^ 

court  was 
classed  with  the  adult  criminal.     The  view  gained  ground  that  the   developed. 

boy  or  girl  convicted  of  wrong-doing  ought  to  be  subjected  to  treat- 
ment which  would  aim,  not  so  much  to  punish  the  offender,  as  to 
correct  the  mistaken  tendencies  of  youth.  After  1899  ^  response  to 
this  conviction  was  evidenced  in  the  creat'on  of  juvenile  courts  in 
various  states  of  the  Union.  The  Children's  Bureau  in  the  Depart- 
ment of  Labor  recently  conducted  a  nation-wde  survey  of  juvenile 
courts,  and  summarized  the  significant  tendencies  of  the  juvenile 
court  movement  in  the  following  language: 

The  wisdom  of  deahng  with  the  child  offender  not  as  a  wrong-   A  wise  step, 
doer,  but  as  one  in  special  need  of  care  and  protection,  has  been 
fully  borne  out  in  practical  experience.  .  .  . 

The  extension  of  juvenile  court  organization.  —  Increasing  recognition   The  exten- 

is  being  given  to  the  importance  of  the  extension  and  development   f'°"  °f  ^^^ 

juvenile 

of  juvenile  court  organization,  that  all  children  who  come  before  the  court  ma- 
courts  may  have  an  equal  chance.    The  problem  for  the  immediate  '^*i'n^r>- 
future  is  the  working  out  of  practical  methods  by  which  the  principles 
of  the  juvenile  court  may  be  universally  applied.  .  .  . 

Medico-psychological  work.  —  The  importance  of  knowledge  of  the  The  psycho- 
child's  physical  and  mental  condition,  of  his  home,  and  of  his  family  P^^hic  ele- 

.  .  mcnt  m 

and  personal  history  is  recognized  as  essential  to  successful  work  by  juvenile 

the  court,  though  the  development  of  facihties  for  diagnosis  has  been   ^'^^^^  P""*^ 

'  From  the  United  States  Department  of  Labor,  Children's  Bureau,  Courts  in 
theUnited  States  Hearing  Children's  Cases.     Washington,  1920;  pp.  15-19. 


Physical 
and  mental 
examination 
of  the  juve- 
nile offender. 


Coordina- 
tion of 
juvenile  and 
family 
cases. 


Probation 
work  and 
the  juvenile 
court. 


Cooperating 
agencies. 


286 


READINGS  IN  AMERICAN  DEMOCRACY 


I 


relatively  slow.  The  Juvenile /Psychopathic  Institute  of  Chicago, 
now  a  part  of  the  state-wide  Juvenile  Psychopathic  Institute  of 
Illinois,  was  the  pioneer  in  the  thorough-going  study  of  children 
before  the  courts.  .  .  . 

Investigation  of  home  conditions  and  family  and  personal  history 
is  usually  a  part  of  the  regular  investigations  made  by  the  probation 
officers.  Physical  examinations  are  given  much  more  generally  than 
mental  examinations.  In  thirteen  courts  mental  cHnics  were  main- 
tained as  a  part  of  the  court  organization.  In  some  of  these  climes  the 
examinations  of  physical  and  mental  conditions,  and  the  studies  of 
social  histories  were  parts  of  a  unified  program  for  the  diagnosis  of 
the  children's  needs  and  possibifities.  Frequently  the  only  children 
given  the  intensive  study  indicated  are  those  presenting  especially 
difficult  problems,  though  the  present  feehng  among  many  familiar 
with  the  work  is  that  aU  children  coming  before  the  courts  should 
have  the  benefit  of  such  consideration.  .  .  . 

Coordination  of  the  trial  and  treatment  of  juvenile  and  family 
cases.  .  .  .  There  is  a  movement  looking  toward  the  coordination 
of  the  trial  and  treatment  of  juvenile  and  family  cases,  including 
desertion  and  nonsupport,  contributing  to  dehnquency  or  dependency, 
divorce,  illegitimacy  cases,  adoption,  and  guardianship.  The  National 
Probation  Association  has  gone  on  record  in  favor  of  such  consolida- 
tion of  court  work  touching  closely  the  family  Hfe,  holding  that  all 
these  cases  should  be  dealt  with  in  much  the  same  manner  as 
children's  cases.  .  .  . 

State  supervision  of  juvenile  court  and  probation  work.  —  The  state 
probation  commissions  of  New  York  and  Massachusetts  have  done 
notable  work  in  supervising  juvenile  probation  and  standardizing 
and  centraUzing  the  work  of  the  courts.  In  some  other  states  there 
are  supervising  agencies  of  various  types.  Such  activities  contribute 
greatly  to  the  extension  of  the  juvenile  court  organization,  the  main- 
tenance of  efficient  probation  service,  the  systematizing  of  the  records, 
and  the  general  appHcation  of  the  principles  of  the  juvenile  court 
movement. 

Community  cooperation.  —  The  growth  of  the  juvenile  court  has 
been  to  a  great  extent  dependent  upon  the  cooperation  and  assistance 
of  other  social  agencies  in  the  community.  ...  In  many  courts  a 


CRIME  AND   CORRECTION  287 

definite  method  for  cooperation  with  the  community  has  been  de- 
veloped. Provision  is  made  by  law  in  a  number  of  states  for  the 
estabUshment  of  county  or  other  local  boards  which  serve  the  court 
in  an  advisory  and  auxiliary  capacity.  ...  In  other  states  cooperat- 
ing boards  have  been  estabUshed  without  special  statutory  provision. 
Often  state  boards  of  charities  or  child  welfare  bureaus  actively  co- 
operate. A  number  of  private  societies  doing  protective  work  or 
child-placing  give  the  courts  valuable   assistance. 

As  the  work  of  the  juvenile  court  develops,  some  of  the  under-  Conclusion, 
lying  causes  and  conditions  of  child  dehnquency  and  neglect  become 
more  evident.  The  results  of  intensive  studies  of  individual  children 
have  indicated  the  varieties  of  provision  which  must  be  made.  The 
need  for  the  early  recognition  and  treatment  of  abnormahties  in  the 
child's  physical,  mental,  or  moral  development  has  been  conclusively 
demonstrated.  In  this  field  the  responsibility  reverts  to  the  home,  the 
school,  and  the  other  social  forces  of  the  community.  The  adequate 
fxilfillment  of  these  obligations  will  result  in  the  prevention  of  a 
considerable  amount  of  juvenile  delinquency  and  in  the  consequent 
reduction  of  the  number  of  children  who  come  before  the  courts. 


124.    Substitutes  for  imprisonment  ^ 

When  the  individual  has  been  convicted  of  wrong-doing,  there   Changing 
arises  the  question  of  w-hat  is  to  be  done  with  him.     Formerly,  impris-   ^^'^'^"'i^  , 
onment  was  looked  upon  as  the  common,  if  not  the  only,  method  of   offender. 
disposing  of  the  criminal.     With  the  development  of  the  modem 
spirit  in  penolog\'.  however,  penologists  are  more  and  more  asking 
the  question,  Is  imprisonment  necessary  in  this  case,  or  might  the 
reformation  of  the  prisoner  be  effected  more  surely  and  more  quickly 
by  some  other  method  of  treatment?    To-day  we  are  making  a  con- 
siderable use  of  substitutes  for  imprisonment,  especially  in  the  case 
of  children,  petty  criminals,  first  offenders,  and  the  mentally  defective. 
The  various  types  of  treatment  which  may  be  substituted  for  imprison- 
ment are  discussed  by  the  late  Professor  Henderson  in  the  following 
passage: 


>  From  Charles  Richmond  Henderson,  Introduction  to  the  Study  of  the  Dependent, 
Defective,  and  Delinquent  Classes.     D.  C.  Heath  &  Co.,  1901;  pp.  303-306. 


288 


READINGS  IN  AMERICAN  DEMOCRACY 


Limitations 
of  the 
prison. 


How  the 
probation 
system 
operates. 


Use  of  the 
fine. 


Experience  proves  that,  for  many  of  the  criminal  class,  the  prison 
fails  in  both  its  main  objects:  it  does  not  deter  and  it  does  not  re- 
form; .  .  .  the  prison  does  not  touch  the  permanent  causes  of  crime 
which  inhere  in  the  economic  conditions,  the  bad  housing,  the  neglect 
of  education,  and  the  hideous  squalor,  filth,  and  misery  of  cities. 
The  prison  comes  too  late  to  touch  these  factors.  Without  going  into 
general  social  reforms  at  this  point,  we  may  consider  some  of  the 
proposed  substitutes  for  the  prison  and  its  deprivation  of  liberty  and 
suspension  of  normal  habits  of  industrial  and  domestic  life. 

The  probation  system.  —  The  main  features  of  this  method  are 
ordinary  arrest,  detention,  investigation,  and  probation.  Persons 
charged  with  drunkenness,  for  example,  or  some  other  offense  of  a 
relatively  mild  nature,  and  who  are  presumably  not  dangerous  or 
habitual  offenders,  are  temporarily  placed  in  a  house  of  detention. 
An  officer  of  the  court  is  appointed  to  investigate  their  character  and 
history  by  inquiries  in  the  cell  and  among  associates  and  neighbors. 
The  purpose  of  this  investigation  is  to  discover  the  environments, 
influences,  capacity  for  work,  and  tendencies  of  life,  and  to  report 
to  the  court.  If  the  court  finds  it  unsafe  to  give  the  person  freedom, 
the  regular  course  of  law  is  followed.  But  if  there  is  hope  of  reforma- 
tion without  deprivation  of  liberty,  the  judge  grants  a  "continuance" 
of  the  case  pending  probation;  the  offender  is  released  on  promise 
to  maintain  good  conduct,  and  the  probation  officer  visits  him  or 
her  once  each  week  and  makes  certain  that  the  advice  of  the  judge 
is  followed.  Industrial  occupation  is  secured  at  home,  or  with  an 
employer,  or  in  a  private  institution;  and  a  relation  of  friendly  guid- 
ance and  assistance  is  maintained.  Thus  an  offender  may  be  reformed, 
or  prevented  from  becoming  a  habitual  criminal,  by  personal  influence 
and  help,  without  losing  time  from  employment,  without  being  cut 
off  from  family  and  friends,  and  without  incurring  the  reputation 
of  a  "jail-bird." 

Fines.  —  It  has  been  found  possible  to  substitute  fines  for  imprison- 
ment in  many  cases,  where  the  offense  is  not  serious  and  the  security 
for  payment  is  ample.  Judges  in  states  which  give  the  option  gen- 
erally prefer  to  inflict  fines,  if  this  way  is  open  to  them.  In  cities  there 
are  great  abuses,  but  this  is  no  objection  to  the  principle.  .  .  , 
Professional  and  dangerous  criminals  should  always  be  imprisoned 


CRIME  AND   CORRECTION  289 

without    giving   their  comrades    the  power  to  set   them   free   by 
paying  a  fine.  .  .  . 

Colonies.  —  For   vagrant,   feeble-minded,    futile,    mendicant,   and  The  use  of 
semi-criminal  persons,  it  seems  desirable  to  establish  voluntary  and  colonies  for 

certain 
also  compulsory  agricultural  colonies.     Where  men  are  willing  to   classes. 

submit  themselves  to  control  voluntarily  and  to  accept  discipline 

and  training  for  industry,  it  may  be  sufficient  to  provide  colonies 

on  the  German  plan,  without  restrictions  as  to  coming  and  going. 

But  for  those  who  are  lawless  and  criminal  such  colonies  of  training 

must  be  compulsory,  since  such  men  will  neither  accept  discipline 

which  is  good  for  them  nor  continue  under  it.     Drunkards  should 

be  provided  for  in  special  hospital  asylums,  under  long  sentences 

of  three  or  four  years,  and  kept  at  work  in  the  open  air  as  much  as 

the  cKmate  will  permit.  .  .  . 

125.   The  functions  of  the  psychopathic  expert  ^ 
The  recent  development  of  medicine  and  psychology  has  exerted   Effect  of 

a  marked  influence  upon  our  treatment  of  the  so-called  criminal   ^^  develop- 

^  _  ment  of 

classes.     The   appHcation   of   psychological   and   pathological   tests   medicine 

to  certain  types  of  offenders  has  encouraged  the  beUef  that  a  large  psychol- 

■^  ^  "  ogy  upon 

proportion  of  offenders  are  mentally  or  physically  defective,  and  that  penology. 
nothing  is  to  be  gained  by  treating  such  individuals  as  normal  and 
responsible  persons.  Criminal  psychopathology  is  still  in  its  infancy, 
but  it  has  progressed  sufficiently  to  demonstrate  the  value  of  sub- 
jecting offenders  to  thorough  mental  and  physical  tests.  On  the 
basis  of  these  tests,  an  intelligent  and  constructive  disposal  of  each 
individual  may  be  made.  Some  of  the  functions  of  the  psychopathic 
expert  are  described  in  the  following  extract  from  a  bulletin  of  the 
Psychopathic  Department  of  the  Chicago  House  of  Correction: 

All  of  those  between  the  ages  of  17  and  21  who  are  sentenced  to  Psycho- 
House  of  Correction  are  subject  to  call  for  psychological  diagnosis,    'osi^al  diag- 
Of  these  there  are  a  number  who  are  recommended  to  the  Psychopathic   Chicago 
Department  by  the  Boys'  Court.    To  this  group  special  attention  is 
paid.     Whenever  the  above  list   is  exhausted,  older  inmates,  par- 
ticularly recidivists,  are  interviewed.  .  .  . 

'  From  the  Chicago  House  of  Correction,  Research  Department,  Bulletin  No.  i. 
Chicago,  July,  1915;  pp.  4-7. 


House  of 
Correction. 


I 


290 


READINGS  IN  AMERICAN  DEMOCRACY 


Attitude  of 
the  inmates. 


Type  of 
questions 
asked  the 
inmate. 


Mental 
tests  are 
next  em- 
ployed. 


Acting  upon 
the  results. 


[In  coming  into  the  psychopathic  laboratory,]  the  inmate  knows 
he  has  nothing  to  lose  and  everything  to  gain.  We  have  consequently 
had  no  difficulty  at  all;  in  fact,  men  have  come  entirely  of  their  own 
voHtion  to  see  what  we  could  do  for  them  after  having  reahzed  that 
they  were  somewhere  out  of  gear.  Many  have  anxiously  come  to  see 
what  we  could  do  to  help  them  keep  out  of  further  difficulty.  .  .  . 

The  interview  is  begun  with  questions .  regarding  his  school  and 
trade  training,  his  industrial  history,  the  positions  he  has  held, 
etc.  .  .  .  We  then  obtain  a  full  and  detailed  account  of  the  criminal 
career  of  the  individual  from  the  day  he  first  found  himself  in  diffi- 
culty. Any  past  sicknesses,  accidents  and  diseases  are  noted.  In- 
quiry is  made  of  any  past  examinations,  mental,  physical  or  both. 
The  subject  is  then  questioned  regarding  his  father,  mother,  siblings 
and  other  relatives,  the  same  information  being  elicited  regarding 
them  as  was  obtained  from  him  personally.  We  often  uncover  a 
neuropathic  family,  of  which  this  member  is  but  one  out  of  a  number 
of  others  who  are  not  only  potentially  a  danger  and  menace  to  the 
community,  but  have  already  made  society  pay  dearly  for  their  having 
been  at  large.  .  .  . 

With  this  personal-industrial-sociological-family  history,  more  or 
less  complete,  we  pass  on  to  our  mental  tests.  [We  use  a  number 
of  tests,  including  a]  test  for  audition  (watch) ;  a  test  with  the  dyna- 
mometer for  obtaining  the  fatigue  index  described  in  Whipple's 
Manual,  supplemented  by  our  formula  for  an  index  of  the  subject's 
ability  to  perform  purely  physical  labor;  the  tests  for  height,  standing 
and  sitting,  weight,  strength  of  grip  and  vital  capacity,  besides  some 
of  our  own  tests  for  ethical  development.  These  are  gradually  being 
supplemented,  and  in  the  near  future  we  plan  to  add  tests  of  ability 
to  learn  in  relation  to  forgetting  and  to  re-adaptation,  among 
others.  ... 

On  the  basis  of  the  information  obtained  a  report  on  each  in- 
dividual case  is  made  and  the  record  placed  in  the  hands  of  the 
Superintendent,  who  acts  upon  the  recommendations.  As  a  result 
of  the  examination,  any  of  these  three  courses  may  be  followed, 
depending  upon  general  conditions:  (a)  the  inmate  may  be  placed 
in  a  special  class  for  mental  defectives;  or,  (b)  he  may  be  placed 
at  work  that  will  benefit  him  most,  work  that  will  give  him  the 


CRIME   AND   CORRECTION  291 

training  and  experience  necessary  to  gain  him  entry  into  that  in- 
dustry after  his  release;  or  (c)  he  may  be  merely  placed  at  ordinary 
labor  qn  the  grounds.  .  .  . 


126.   Principles  of  reformation  ^ 

The  development  of  modern  penology  in  the  United  States  has   The  influ- 
been  due,  not  so  much  to  a  widespread  recognition  of  constructive   ^^^    . 
principles,  as  to  the  talent  and  energy  of  a  few  men.    Of  these  none  Howard 
is  better  known,  and  none  more  generally  recognized  as  a  sound  and    *^"^^s- 
progressive  student  of  prison  administration,   than  Dr.   Frederick 
Howard  Wines.     In  1870  a  National  Prison  Congress  met  at  Cin- 
cinnati, Ohio,  and  adopted  a  declaration  of  principles  of  reformation 
I  which  had  been  formulated  by  Dr.  Wines.    These  principles,  though 
i  adopted  a  half  century  ago,  are  still  the  foundation  for  prison  work 
iin  this  country,  and  as  such  are  generally  recognized.    Some  of  the 
I  more  significant  of  these  principles  follow: 

I.  Crime  is  an  intentional  violation  of  duties  imposed  by  law.   Crime  de- 
which  inflicts  an  injury  upon  others.  ... 

II.  The  treatment  of  criminals  by  society  is  for  the  protection  of   Object  in 

society.    But  since  such  treatment  is  directed  to  the  criminal  rather   t''^=i^'"8 
-'  crime. 

than  to  the  crime,  its  great  object  should  be  his  moral  regeneration. 
Hence  the  supreme  aim  of  prison  discipline  is  the  reformation  of 
criminals,  not  the  infliction  of  vindictive  suffering. 

III.  The  progressive  classification  of  prisoners,  based  on  character  The  mark 
and  worked  on  some  well-adjusted  mark  system,  should  be  estabHshed   ^Y^^^^    ^' 
in  aU  prisons  above  the  common  jail. 

IV.  Since  hope  is  a  more  potent  agent  than  fear,  it  should  be   The  use  of 
made  an  ever-present  force  in  the  minds  of  prisoners,  by  a  well-devised   ^'^'•''^^ 
and  skilfully  applied  system  of  rewards  for  good  conduct,  industry 

and  attention  to  learning.  Rewards,  more  than  punishments,  are 
essential  to  every  good  prison  system. 

V.  The  prisoner's  destiny  should  be  placed,  measurably,  in  his  The  role  of 
own  hands;    he  must  be  put  into  circumstances  where  he  will  be  j^^J^p^^ 
able,  through  his  own  exertions,  to  better  continually  his  own  con- 

1  From  the  National  Prison  Congress,  Declaration  of  Principles  PromulgaUd  at 
Cincinnati.    1870. 


292 


READINGS  IN   AMERICAN  DEMOCRACY 


The  indeter- 
minate sen- 
tence. 


Importance 
of  religion 

and  educa- 
tion. 


Necessity  of 
a  harmony 
of  wills 


The  pre- 
vention of 
crime. 


Society's 
duty  to  the 
discharged 
prisoner. 


dition.    A  regulated  self-interest  must  be  brought  into  play,  and  made 
constantly  operative. 

VIII.  Peremptory  sentences  ought  to  be  replaced  by  those  of 
indeterminate  length.  Sentences  limited  only  by  satisfactory  proof 
of  reformation  should  be  substituted  for  those  measured  by  mere 
lapse  of  time. 

IX.  Of  all  reformatory  agencies,  reUgion  is  first  in  importance, 
because  most  potent  in  its  action  upon  the  human  heart  and  life. 

X.  Education  is  a  vital  force  in  the  reformation  of  fallen  men  and 
women.  Its  tendency  is  to  quicken  the  intellect,  inspire  self-respect, 
excite  to  higher  aims,  and  afford  a  healthful  substitute  for  low  and 
vicious   amusements.  .  .  . 

XII.  A  system  of  prison  discipHne,  to  be  truly  reformatory, 
must  gain  the  will  of  the  convict.  He  is  to  be  amended;  but  how  is 
this  possible  with  his  mind  in  a  state  of  hostihty?  No  system  can 
hope  to  succeed  which  does  not  secure  this  harmony  of  wills,  so  that 
the  prisoner  shall  choose  for  himself  what  his  officer  chooses  for  him. 
But,  to  this  end,  the  officer  must  really  choose  the  good  of  the  prisoner, 
and  the  prisoner  must  remain  in  his  choice  long  enough  for  virtue 
to  become  a  habit.  This  consent  of  wills  is  an  essential  condition 
of  reformation.  ...  j 

XX.  It  is  the  judgment  of  the  congress,  that  repeated  short 
sentences  for  minor  criminals  are  worse  than  useless;  that,  in  fact, 
they  rather  stimulate  than  repress  transgression.  Reformation  is 
a  work  of  time;  and  a  benevolent  regard  to  the  good  of  the  criminal 
himself,  as  well  as  to  the  protection  of  society,  requires  that  his 
sentence  be  long  enough  for  reformatory  processes  to  take  effect. 

XXI.  Preventive  institutions,  such  as  truant  homes,  industrial 
schools,  etc.,  for  the  reception  and  treatment  of  children  not  yet  crimi- 
nal but  in  danger  of  becoming  so,  constitute  the  true  field  of  promise 
in  which  to  labor  for  the  repression  of  crime. 

XXII.  More  systematic  and  comprehensive  methods  should  be 
adopted  to  save  discharged  prisoners,  by  providing  them  with  work 
and  encouraging  them  to  redeem  their  character  and  regain  their 
lost  position  in  society.  The  state  has  not  discharged  its  whole  duty 
to  the  criminal  when  it  has  punished  him,  nor  even  when  it  has  re- 
formed him.    Having  raised  him  up,  it  has  the  further  duty  to  aid 


CRIME  AND   CORRECTION  293 

in  holding  him  up.    And  to  this  end  it  is  desirable  that  state  societies 
be  formed,  which  shall  cooperate  with  each  other  in  this  work.  .  .  . 


Questions  on  the  foregoing  Readings 

1.  What,  in  the  opinion  of  Chief  Justice  Taft,  is  the  most  serious 

defect  in  American  government? 

2.  Compare  criminal  procedure  in  England  with  criminal  procedure 

in  this  country. 

3.  What,   according   to   Chief  Justice  Taft,   is  the   reason   why   the 

administration  of  justice  is  more  effective  in  England  than  in 
the  United  States? 

4.  How   may   a   wealthy   criminal   secure   the   postponement   of   his 

trial,  or  even  escape  punishment  altogether? 

5.  What  evil  in  criminal  procedure  is  connected  with  the  choice  of 

jurors? 

6.  What  can  be  said  as  to  the  abuse  of  the  right  of  appeal  in  criminal 

trials  in  the  United  States? 
When  did  the  public  defender  movement  begin? 
What  is  the  purpose  of  the  public  defender  movement? 
How  does  the  public  defender  help  to  prevent  unjust  convictions? 
What  can  be  said  as  to  the  cost  to  the  state  of  a  public  defender? 
Illustrate   the  statement  that  the  public  defender  saves   time  in 

criminal  trials. 

12.  Why  was  the  juvenile  court  developed? 

13.  What  is  the  relation  of  medico-psychological  work  to  the  juvenile 

court  movement? 

14.  With  what  type  of  cases  might  juvenile  cases  well  be  coordinated? 

15.  What  is  the  relation  of  community  cooperation  to  the  juvenile 

court? 

16.  Professor  Henderson   says  that   for   many  of  the   criminal  class, 

the  prison  fails  in  two  important  objects.     What  are  these  two 
objects  of  the  prison? 

17.  Explain  the  operation  of  the  probation  system. 

18.  For  what  type  of  delinquents  are  colonies  advisable? 

19.  What   effect   has   the   development   of   medicine   and   psychology 

had  upon  our  treatment  of  the  offender? 

20.  Outline  the  nature  of  the  tests  to  which  inmates  of  the  Chicago 

House  of  Correction  are  subjected  by  the  psychopathic  experts 
of  that  institution. 
31.   What  three  courses  may  be  followed  by  the  authorities,  as  the 
result  of  these  tests? 


294  READINGS  IN  AMERICAN  DEMOCRACY 

22.  What  is  the  importance  of  Frederick  Howard  Wines  in  the  history 

of  American  penology? 

23.  Outline  some  of  the  principles  adopted  by  the  National  Prison 

Congress,  held  at  Cincinnati  in  1870. 

24.  What  did  the  congress  say  as  to  the  "  true  field  of  promise  in 

which  to  labor  for  the  repression  of  crime  "? 

25.  What  did  the  congress    conclude  as  to  society's  attitude  toward 

the  discharged  prisoner? 


CHAPTER   XXII 
THE   NEGRO 

127.    Occupations  of  the  American  Negro  ^ 

There  has  long  been  a  feeling  among  students  of  the  problem  that    Economic 
the  improvement  of  the  economic  status  of  our  colored  population  is   **''^"*  °^ . 
one  of  the  most  fruitful  ways  of  aiding  in  the  adjustment  of  this  group,    can  Negro. 
Industrially  the  Negro  has  made  marked  progress  since  the  days  of 
slavery,  and  yet  it  remains  true  that  to-day  the  masses  of  American 
Negroes  are  unskilled  workers,  and  perilously  near  the  poverty  line. 
The  occupations  of  American  Negroes,  and  their  need  of  industrial 
education,  are  the  subject  of  the  following  extract  from  a  191 7  re- 
port of  the  United  States  Bureau  of  Education  in  the  Department  of 
the  Interior: 

The  moral  and  poKtical  condition  of  any  people  is  closely  related   The  Negroes 

to  their  economic  condition.    Though  the  Negroes  have  made  strik-   ^^^'*^  ^^^^ 

,  .  .  .  ^  ,  progress, 

mg  progress  m  the  acquisition  t)f  property,  they  are  still  a  poor  people,    but  are  still 

They  are  as  yet  "hewers  of  wood  and  drawers  of  water."    According   '^  P^f 

people, 
to  the  United  States  Census,  a  larger  percentage  of  colored  women 

and  children  are  bread\nnners  than  of  any  other  group.    \\'hilc  this 

fact  indicates  that  a  commendable  percentage  of  the  race  is  gainfully 

employed,  it  suggests  the  necessity  of  elevating  the  economic  status 

of  the  group  so  that  the  children  may  attend  school  and  the  women 

may  have  a  better  opportimity  to  care  for  the  morals  and  hygiene 

of  the  home.     The  comparatively  low  economic  status  of  the  race 

is  further  shown  in  the  following  table  by  the  large  proportion  of  all 

Negro  breadwinners  who  are  laborers,  and  the  comparatively  small 

numbers  who  are  in  the  skilled  and  professional  classes: 

'  From  the  United  States  Department  of  the  Interior,  Bureau  of  Education. 
Bulleiin,  1916,  No.  38.    "Negro  Education."    Washington,  1917.    Vol.  i,  pp.  84-85. 

295 


296 


READINGS  IN  AMERICAN  DEMOCRACY 


Occupations 
of  Negro 
males  in 
1910. 


Principal    Occupations   of  Negroes  —  1910 
Occupations  of  Males 


Occupations 


Number 


Occupations 


Number 


Occupations 
of  Negro 
females  in 
1910. 


Total  breadwinners 3,178,554 

Farm  laborers 981,922 

Farmers 798,509 

Laborers,  building  trades.  166,374 

Laborers,  sawmills 91,181 

Laborers,  railroads 86,380 

Porters,  not  in  stores ...  .  51,471 

Draymen  and  teamsters.  50,689 

Coal-mine  operatives ....  39,530 

Laborers,  in  stores 36,906 

Waiters 35,664 

Laborers,  road  building .  .  33, 9^4 

Cooks 32,453 

Deliverymen,  stores 30,511 

Carpenters 30,464 

Janitors  and  se.xtons 22,419 

Barbers  and  hairdressers.  19,446 

Retail  dealers 17,659 

Clergymen 17,427 

Longshoremen,  stevedores  16,379 

Laborers,  brick  factories.  15,792 

Firemen,  stationary 14,927 

Lumbermen  and  raftsmen  14,005 

Laborers,  blastfurnaces.  .  13,519 

Hostlers,  stable  hands.  .  .  12,965 

Laborers,  public  service  .  .  12,767 

Brick  and  stone  masons  .  .  12,401 


Garden  laborers 11,801 

Laborers,  domestic ....  10,380 

Blacksmiths 9,83s 

Painters  and  glaziers. .  .  8,915 

Messenger  boys 8,262 

Coachmen  and  footmen  7,679 

Elevator  tenders 6,276 

Plasterers. 6,175 

Clerks,  not  in  stores .  .  .  6,077 

Firemen,  locomotive.  . .  5, 188 

Engineers,  stationary.  .  4,802 

Brakemen,  locomotive. .  4,719 

Chauffeurs 4,674 

Tailors 4,652 

Soldiers  and  sailors.  .  .  .  3,734 

Shoemakers 3,695 

Restaurant  keepers ...  .  3,635 

Cleaners,  clothing 3,385 

Builders 3,272 

Furnace     and     smelter 

men 3,203 

Sawyers 3,151 

Mail  carriers 2,756 

Physicians  and  surgeons  2,744 

Clerks  in  stores 2,582 

Plumbers,  steamfitters. .  2,285 

All  other  occupations .  .  385,211 


Occupations  of  Females 


Occupations 


Number 


Occupations 


Number 


Total  breadwinners 2,013,981       Cooks 205,939 

Farm  laborers 967,837       Farmers 79)309 

Laundresses  not  in  laun-  Dressmakers  and  seam- 
dry 361,551           stresses 38,148 


THE  NEGRO  297 

Occupations  of  Females  —  cont. 

Occupations  Number  Occupations  Number 

School-teachers 22,441  Charwomen  and  clean- 
Nurses  (not  trained) 17,874           ers 7,026 

Chambermaids 14,071        Building  trades 6,174 

Laundry  operatives 12,196       Hairdressers 3,782 

Housekeepers 10,021        Retail  dealers 2,994 

Boarding-housekeepers..  9,183  Restaurant  keepers.  ..  .  2,734 

Cigar         and        tobacco  Musicians  and  teachers.  2,347 

workers 8,267       Trained  nurses 2,158 

Waiters 7,434  All  other  occupations. .  232,495 

According  to  this  table,  the  only  groups  forming  a  substantial   Importance 
proportion  of  all  Negro  breadwinners  are  the  laborers,  farmers,  and   ° .  '"  "^^"^ 
laundresses.     Other  than  farmers,  no  skilled  or  professional  group   for  the 
forms  even  i  per  cent  of  the  total.     Under  a  liberal  interpretation      ^^°' 
of  terms,  the  number  in  these  classes  is  only  about  250,000  or  5  per 
cent  of  the  total.     It  is  apparent,  therefore,  that  the  possibilities  of 
the  race  in  skilled  occupations  have  just  begun.     In  view  of  the  in- 
creasing demand  of  the  southern  states  for  skilled  workmen,  it  is 
vitally  important  to  the  colored  people  that  they  grasp  every  oppor- 
tunity for  industrial  education.  .   .  . 

128.   Educational  needs  of  the  Negro  ^ 

There  can  be  no  doubt  but  that  a  larger  share  of  industrial  education   Industrial 

would  prove  of  great  benefit  to  our  colored  citizens.     But,  while   education 
_  _  _  _  only  one 

very  important,  industrial  education  is  only  one  phase  of  the  general   phase  of 

problem  of  Negro  education.     The  Am.crican  Negro  must  be  fitted  t^^  general 

not  only  for  industrial,  but  as  well  for  social,  intellectual  and  religious  Negro  edu- 

progress.     In  the  following  selection,  the  United  States  Bureau  of  '^^^'o"- 

Education  in  the  Department  of  the  Interior  outlines  the  general 

'■(lucational  needs  of  the  Negro: 

The  general  poverty  of  colored  schools,  the  conflicting  claims  of  Educational 

various  types  of  education,  and  the  public  ignorance  of  the  real  situa-  "^^^ 

*  From  the  United  States  Department  of  the  Interior,  Bureau  of  Education. 
Bulletin,  1916,  No.  38.    "Negro  Education."    Washington,  1917.    Vol.  i,  pp.  11-13. 


298 


READINGS  IN  AMERICAN   DEMOCRACY 


with  respect 
to  elemen- 
tary educa- 
tion, 


secondary 
schools  and 
teacher 
training, 


higher  edu- 
cation, 


tion,  all  point  to  the  importance  of  a  statement  of  the  educational 
needs  of  colored  people.  The  follo\\'ing  outline  ...  is  offered  as 
a  suggestion  to  those  whose  duty  it  is  to  determine  the  educational 
policies  for  colored  schools: 

Elementary  schools.  —  Elementary  education  is  pecuharly  the 
responsibility  of  the  pubUc-school  authorities.  Though  the  enroll- 
ment of  the  philanthropic  schools  is  75  per  cent  elementary,  the  pupils 
comprise  only  4  per  cent  of  the  Negro  children  6  to  14  years  of  age. 
The  southern  states,  out  of  their  Umited  resources,  are  spending 
almost  $6,000,000  annually  for  the  salaries  of  teachers  in  the  colored 
public  schools.  While  this  is  proportionately  not  more  than  a  fourth 
of  that  spent  on  teachers  in  white  schools,  it  is  a  substantial  simi. 
In  comparison  with  the  needs  of  the  elementary  school  system,  how- 
ever, it  is  most  inadequate.  So  long  as  the  elementary  school  faciUties 
are  insufficient,  every  kind  of  education  above  the  elementary  grades 
is  seriously  handicapped.  ,  .  . 

Secondary  schools  and  teacher  training.  —  The  primary  importance 
of  secondary  schools  for  colored  people  Ues  in  their  contribution 
to  the  much  needed  supply  of  trained  teachers  for  the  elementary 
schools.  According  to  the  state  records  over  50  per  cent  of  the  colored 
teachers  in  pubhc  schools  have  an  education  less  than  the  equivalent 
of  six  elementary  grades.  This  lamentable  condition  can  be  cor- 
rected only  by  a  system  of  pubUc  secondary  schools  with  provision 
for  teacher  training,  theory  and  practice  of  gardening,  and  manual 
training.  .  .  . 

College  and  professional  education.  —  The  education  of  Negroes 
in  America  undoubtedly  requires  institutions  that  are  genuinely 
of  college  grade.  The  first  step  in  the  reahzation  of  this  need  is 
the  agreement  that  all  shall  combine  in  an  effort  to  develop  a  few 
well-selected  institutions.  .  .  .  The  second  requirement  of  success 
in  this  direction  is  the  determination  that  every  college  activity 
shall  be  adapted  to  the  demands  of  modem  society.  Medical  educa- 
tion is  already  centraUzed  in  two  institutions.  It  is  highly  desirable 
that  some  cooperative  effort  shall  also  be  made  to  improve  the  stand- 
ards of  schools  for  colored  ministers.  No  phase  of  Negro  education 
has  been  more  neglected. 

Agricultural   and   mechanical   schools.  ■ —  The   imf)ortance   of   the 


THE   NEGRO  299 

preparation  of  colored  youth  for  the  industries  and  for  life  in  rurul   iraininR  in 
communities  is  self-evident.     In  view  of  the  ovenvhelming  propor-    ^^"^  afcricul. 
tion  of  Negroes  in  rural  districts,  the  claims  of  rural  education  pre-   mechank'al 
cede  all  others.    While  opportunities  for  the  highly-technical  trades   •"'•"sirics. 
should  be  open  to  colored  pupils,  the  primary  need  is  emphatically 
for  a  knowledge  of  gardening,  smaU  farming,  and  the  simple  in- 
dustries. .  .  . 

Teaching  methods.  —  Elaborate  faciHties  are  useless  if  the  teaching  and  meth- 
methods  are  ineffective.     In  actual  practice  teaching  is  still  too  "^^  '^j 
generally  regarded  as  talking  or  lecturing.  .  .  .  The  teacher  should   ^^'"^^^' 
make  every  effort  to  understand  the  pupil  and  his  needs,  his  mind 
processes,  his  ambitions,  his  means  of  support,  and  his  health.    He 
should  also  know  the  pupil's  home,  his  community,  and,  if  possible, 
his  vocational  outlook.     With  such  knowledge  as  the  basis  of  in- 
struction, the  teacher  will  not  be  content  with  mere  lectures  to  his 
class.     From  talking  about  the  subject,  he  will  guide  his  pupils  to 
observe   actual   conditions.  .  .  .  The    teacher  wiU   exchange  views 
with  pupils  and  all  will  mingle  their  ideas  and  their  experiences  in 
the  search  for  truth.     From  the  artificial  conditions  of  the  class 
room,  pupils  and  teacher  will  finally  proceed  to  the  actual  conditions 
of  real  Ufe  and  together  they  will  "learn  to  do  by  doing." 


129.   Statutory  protection  of  the  Negro  ^ 

The  period  following  the  Civil  War  has  witnessed  the  develop-   Develop- 
ment of  numerous  laws  defining  the  position  and  rights  of  the  Negro.   |"^'"J  '^! 
This  legislation  is  of  two  types:    the  first  type  includes  laws  which   affcctinj,' 
restrict  the  activities  of  the  Negro;    the  second  type  includes  laws         Negro, 
which  aim  to  protect  him.    Among  laws  grouped  under  this  second 
type  of  legislation,  the  most  important  statutes  have  been  those 
which  aim  to  protect  the  Negro  with  respect  to  civil  rights,  educa- 
tion, and  transportation.    Something  of  the  nature  of  protective  leg- 
islation for  the  Negro  may  be  illustrated  by  the  following  selection 
by  Dr.  Franklin    Johnson,  in  which    he   discusses  laws  to  protect 
Negroes  in  the  enjoyment  of  places  of  public  resort: 


1  From  Franklin  Johnson,  The  Development  of  Stale  Legislation  Concerning  the 
Free  Negro.     The  Arbor  Press,  New  York,  1918;  pp.  28-30. 


300 


READINGS   IN  AMERICAN   DEMOCRACY 


Beginnings 
of  legisla- 
tion to  pro- 
tect the  Ne- 
gro in  the 
enjoyment 
of  places  of 
public  resort. 

Civil 
rights 
statutes  in 
the  South. 


Further  leg- 
islation in 
the  North. 


The  Federal 
Civil 

Rights  Act 
of  1875. 


I 


[The  first  act  to  provide  for  protection  of  the  colored  race  in  en- 
joyment  of  the  accommodations  of  places  of  public  resort]  appeared 
in  Massachusetts  in  a  statute  of  1865.  This  provided  simply  that  no 
distinction  or  discrimination  on  account  of  race  should  be  lawful  in 
any  licensed  inn,  pubhc  place  of  amusement,  pubhc  conveyance, 
or  public  meeting.  ... 

During  the  Reconstruction  period  of  the  southern  states,  a  num- 
ber of  such  states  enacted  civil  rights  laws,  which  were  very  full 
and  stringent  in  their  terms.  South  Carolina  was  the  first  state  so  to 
provide,  being  followed  by  Louisiana,  Texas,  Arkansas,  Florida,  and 
Mississippi.  .  .  .  The  longest  and  most  stringent  of  these  acts  was 
that  of  Arkansas.  All  of  these  southern  civil  rights  statutes 
were  repealed  either  by  special  enactment  to  that  effect  or  by  omis- 
sion from  the  revised  statutes  of  their  states  after  the  end  of  the 
Reconstruction  period,  except  such  as  were  found  not  to  be  incon- 
sistent with  the  trend  of  later  legislation,  through  later  interpre- 
tation of  their  precise  terms. 

There  was  no  further  legislation  in  the  northern  states  upon 
this  subject  until  1873,  when  New  York  adopted  a  civil  rights  act 
somewhat  similar  to  that  of  Massachusetts,  but  in  a  ftiller  and  more 
developed  form.  The  next  provision  was  in  New  York  again,  in 
1881,  which  substantially  reenacted  the  earlier  provision,  and  pro- 
hibited discrimination  in  the  enjoyment  of  the  accommodations 
of  taverns,  pubhc  conveyances,  and  places  of  public  resort  or  amuse- 
ment, because  of  race,  creed  or  color. 

Between  these  two  laws,  however,  came  the  Federal  Act  of  1875, 
known  as  the  Civil  Rights  Act  of  that  year.    This  followed  in  general  ! 
terms  the  provisions  of  the  Massachusetts  and  the  New  York  stat-  l 
utes.  ...  It  then  provided  that  all  persons  should  be  entitled  to  full 
and  equal  enjoyment  of  the  accommodations  and  privileges  of  inns,  I 
public  conveyances  on  land  and  water,  theatres,  and  other  places 
of  pubhc  amusement,   subject  only  to  conditions  apphcable  aUke  ; 
to  citizens  of  every  race.    The  penalty  for  violation  of  this  law  was  I 
both  a  forfeiture  to  the  person  aggrieved  and  fine  or  imprisonment 
for   the   violator.  ... 

This  law  cHd  not  accomplish  its  purpose,  for  after  its  passage 
Negroes  still  continued  to  be  excluded  from  places  of  pubhc  resort. : 


THE  NEGRO  301 

This  resulted  in  a  number  of  cases  appearing  in  the  courts,  finally  Testing  the 

culminating  in  the  so-called  civil  rights  cases,  which  were  passed   constitution- 

'^  ality  of  the 

upon  by  the  United  States  Supreme  Court  in  1883.     These  cases  statute. 

arose  in  Missouri  and  Tennessee  in  the  South,  and  New  York,  Kansas 
and  California  in  the  North,  and  were  brought  for  denying  to  Negroes 
the  accommodations  of  hotels,  theatres  and  railroads.  ...  By  a  di- 
vided vote  the  Supreme  Court  held  that  the  law  of  1875,  in  so  far 
as  it  appHed  to  the  right  of  accommodation  of  the  colored  race  in 
places  of  public  resort,  was  unconstitutional  and  therefore  void.  .  .  . 

This  decision  rendered  it  impossible  for  Congress  to  pass  any   Effect  of 
general  enactment  prohibiting  the  passage  of  laws  by  individual   ^^  ^"^'^"'^^ 
states  concerning  the  separation  of  Negroes  in  places  of  public  resort.    Supreme 
No  further  legislation  of  this  nature  therefore  appeared  among  the   ^°"^  ^^^ 
Federal  statutes.    All  further  legislation  in  this  portion  of  the  field  islation,  and 
was  thereby  thrown  into  the  jurisdiction  of  the  separate  states. 

This  did  not  greatly  affect  legislation  appearing  in  the  southern   upon  legis- 
states,  for  the  reason  that  separation  in  places  of  pubUc  resort  in   ^^'^'"^  ^^ 
most  cases  already  existed  and  was  enforced  by  the  power  of  custom 
and  the  influence  of  the  white  race.    It  was  followed,  however,  by 
enactments  requiring  separation  in  railroad  transportation.  .  .  . 

The  effect  In  the  northern  states  was  quite  different.  These  states,  and  north- 
finding  that  the  Negro  was  no  longer  protected  in  this  portion  of 
the  field  of  his  civil  rights  by  Federal  legislation,  proceeded  to  enact 
separate  state  laws  covering  the  same  ground  in  general.  The  year 
following  the  Supreme  Court  decision,  four  states  passed  such  stat- 
utes, being  followed  successively  by  a  large  number  of  others.  Civil 
rights  laws  have  been  enacted  by  the  following  states:  California, 
Colorado,  Connecticut.  Illinois,  Indiana,  Iowa,  Kansas,  Massachu- 
setts, Michigan,  Minnesota,  Nebraska,  New  Jersey,  New  York,  Ohio, 
Pennsylvania,  Rhode  Island,  Washington,  and  Wisconsin.  .  .  . 


130.   A  new  Negro  problem:   migration^ 

In  the  South,  emancipation  was  followed  by  a  more  or  less  seri- 
ous  disruption    of   numerous  Negro   communities.     One   effect   of 

'  From  The  United  States  Bureau  of  Labor,   Division  of  Negro  Economics, 
Negro  Migration  in  1916-1917.    Washington,  igig;   pp.  149,  152-155. 


em  state 
legislatures. 


302 


READINGS  IN  AMERICAN  DEMOCRACY 


Growing 

importance 
of  the  Ne- 
gro's tend- 
ency to 
migrate 
cityward. 


Significance 
of  Negro 
migration  to 
the  North. 


Organiza- 
tions which 
aim  to  help 
the  Negro  in 
adjusting 
himself  to 
life  in  the 
North. 


The  develop- 
ment of  a 

community 
viewpoint. 


Reception 
of  the  new- 
comers. 


this  disruption  has  been  to  encourage  the  migratory  instinct  among 
our  Negro  population.  However,  migration  did  not  attract  national 
attention  until  the  period  of  the  World  War,  when  the  movement 
of  southern  Negroes  toward  the  cities  of  the  South,  and  particularly 
toward  the  cities  of  the  North,  was  so  marked  as  to  create  what 
may  be  called  a  new  Negro  problem.  In  the  following  extract  from 
a  report  by  the  Division  of  Negro  Economics  in  the  United  States 
Department  of  Labor,  are  outHned  some  of  the  constructive  efforts 
toward  the  adjustment  of  the  migrant  Negro: 

Another  great  mass  movement  of  population  has  been  under  way. 
The  Negro  migrant  has  been  the  pawn  in  a  tremendous  transition. 
Leaving  the  relatively  fixed  social  system  of  the  South  suddenly 
and  in  numbers,  he  has  been  compelled  to  adjust  himself  to  radically 
different  conditions  of  work  and  life  in  the  crowded  northern 
centers.  .  .  . 

From  the  standpoint  of  the  development  of  a  rounded  construc- 
tive program  to  lessen  the  costs  of  the  migration  the  most  interesting 
fact  is  that  in  the  last  year  the  National  League  on  Urban  Condi- 
tions Among  Negroes  .  .  .  has  estabhshed  a  score  of  branches 
in  as  many  cities.  .  .  . 

In  Ohio  a  Federation  for  Service  Among  Colored  People  was  formed 
in  July,  1917,  with  representation  in  most  industrial  communities 
of  the  state.  It  has  appointed  working  subcommittees  on  housing, 
labor,  health,  and  crime  and  welfare  work.  .  .  . 

Here  and  there  a  community  viewpoint  is  fast  developing.  The 
pubhc-health  function  of  northern  cities  is  in  process  of  rapid  ex- 
pansion, and  the  departments  of  health  are  beginning  to  undertake 
constructive  work.  In  Philadelphia,  Cleveland,  and  Pittsburgh 
the  departments  were  burdened  by  the  migration  in  vaccinating 
the  newcomers,  preventing  smallpox  epidemics,  and  in  enforcing 
sanitary  regulations  in  lodging  places  and  camps.  Many  industries 
employing  Negroes  have  introduced  physical  examinations.  ... 

With  regard  to  cordial  reception  of  the  newcomers  and  the  organ-  j 
ization  of  their  leisure  time  so  httle  effective  work  has  so  far  been , 
done  that  delinquency,  drunkenness,  and  vice,  as  well  as  industrial 
inefffciency,  have  taken  frightful  toll.  .  .  .  The   pitiful    straits   of 
many  of  the  newcomers  were  met  in  part  by  the  provisions  of  tem- 


THE   NEGRO  303 

porary  quarters  by  the  Travelers'  Aid  and  similar  societies,  as  in 
Philadelphia  and  Chicago,  and  direction  to  decent  lodging  and  board- 
ing places  by  local  leagues.  In  Cincinnati  the  Park  Street  Newcomers' 
ReHef  Home  was  estabhshed.  In  Pittsburgh  a  colored  mission 
using  an  old  church  in  the  Negro  quarter  served  this  need.  It  is 
essential  to  emphasize  the  fact  that  the  colored  churches  have  done 
almost  the  only  extensively  organized  work  for  the  welfare  of  the 
newcomers.  .  .  . 

The  Urban  League  program  includes  organization  of  the  recrea-  Recreation 
tion  facihties  among  the  colored  people  to  counteract  the  influence  facilities, 
of  the  saloon  and  gambhng.  In  Detroit  the  use  of  a  pubUc-school 
building  for  two  nights  a  week  and  a  pubHc  high-school  building  for 
one  evening  weekly  was  secured.  ...  In  Philadelphia  also,  as  in 
Louisville  in  the  South,  a  migration  committee  secured  the  use  of 
public  schools  for  recreation  purposes.  .  .  . 

The  intelHgent  Negro  has  long  beheved  that  his  only  escape  from   Causes  of 
the  measures  of  suppression  which  still  exist  is  to  go  to  the  North,   ^.  ^  °^|8^^' 
and  he  has  seized  the  opportunity  whenever  it  was  presented  to  him.    southern 
The  present  unprecedented  influx  of  black  workers  from  the  South   ^^^^'^Ih' 
is  merely  the  result  of  a  sudden  expansion  of  opportunity,  due  to 
a  war-depleted  labor  market  in  the  North.     But  basic  causes  for 
his  migration  are  inherent  in  the  social  and  economic  system  which 
has  retarded  his  progress  for  years.     The  Negro  is  beginning  to 
appreciate  his  own  value  and  duties  and  is  proceeding  to  the  North, 
where  he  feels  he  can  enjoy  a  fuller  measure  of  justice.    This  natu- 
rally means  a  tremendous  problem  for  the  North.    The  race  question 
is  no  longer  confined   to  the  states  below  the  Mason  and  Dixon 
line,  but  is  the  concern  of  the  whole  nation.  .  .  . 

131.   Inter-racial  cooperation  ^ 

Of  recent  years,  the  conviction  has  gained  ground  that  the  prob-  Increasing 
lems  of  the  Negro  will  never  be  solved  without  friendly,  inteUigent,  JJJ^'^^rT- 
and  consistent   cooperation   between   the  white   and   Negro  races,  tion  be- 
There  is  an  increasing  number  of  organizations  which  embody  the  ^^.^  ^^^ 

'  From  Oswald   Garrison  Villard,   "The  Objects  of  the  National  .Association    Negro  races 
for  the  Advancement  of  Colored  People."     .\ddress  delivered  before  the  Fourth 
Annual  Conference  of  the  Association,  Chicago,  191 2. 


304 


READINGS  IN  AMERICAN  DEMOCRACY 


The  object 
of  the  Asso- 
ciation. 


Some  things 
the  Associa- 
tion does 
not  ask. 


Opposition 
to  the  Asso- 
ciation. 


Many  be- 
lieve the 
Association 
too  radical. 


principle  of  inter-racial  cooperation.  One  of  the  most  important, 
although  perhaps  conceived  in  too  niihtant  a  spirit  to  accomplish 
the  greatest  good,  is  the  National  Association  for  the  Advancement 
of  Colored  People.  This  organization,  including  prominent  mem- 
bers of  both  races,  was  formed  in  1909.  In  the  following  passage 
the  objects  of  this  association  are  explained  by  Oswald  Garrison 
Villard: 

The  objects  of  the  National  Association  for  the  Advancement 
of  Colored  People  may  be  put  into  a  single  sentence:  This  society 
exists  in  order  to  combat  the  spirit  of  persecution  and  prejudice 
which  confronts  the  colored  people  of  this  land,  and  to  assure  to 
them  every  right,  privilege  and  opportunity  to  which  every  citizen 
of  the  United  States  is  entitled.  That  it  exists  at  all  is  in  itself  an 
indictment  of  our  American  democracy.  For  it  asks  no  favors,  no 
privileges,  no  special  advantages  or  benefits  for  those  disadvan- 
taged ones,  whose  fathers  and  mothers  but  fifty  years  ago  to-day 
were  still  being  sold  upon  the  auction  block  as  so  much  Hve  stock. 

It  does  not,  of  course,  ask  that  financial  reparation  be  made  to 
them  for  what  their  race  suffered  under  the  monstrous  aggregation 
of  wrongdoing  which  went  by  the  name  of  slavery;  the  colored 
people  themselves  never  demanded  any  such  damages  in  the  courts 
of  law,  or  of  pubHc  opinion.  It  does  not  even  ask  special  indulgence 
for  any  of  their  shortcomings  or  beg  for  them  unusual  economic 
and  educational  opportunities  because  of  their  disadvantages  and 
their  frightful  inheritance  of  vice  and  ignorance  which  was  the  chief 
bequest  of  slavery.  It  merely  asks  equaUty  of  opportunity,  equality 
at  the  ballot  box,  equaUty  in  the  courts  of  the  land. 

Surely  this  is  a  simple  enough  platform  —  a  reasonable  enough 
demand.  Theoretically,  all  but  those  most  imbued  with  race  prej- 
udice grant  the  justness  of  our  contentions.  .  .  .  And  yet  there  are 
many  persons  interested  in  the  welfare  of  the  Negro  who  look  with 
suspicion  upon  our  simple  platform  and  hold  aloof  from  our 
work.  .  .  . 

There  are,  for  instance,  those  prominent  in  the  educational  work 
among  the  Negroes  of  the  South,  both  white  and  black,  who  feel  that 
it  is  a  mistake  to  dwell  upon  injuries  and  wrongs,  outrages  and 
persecution,  because,  in  their  behef,  the  cure  can  only  come  through 


THE  NEGRO  305 

the  slow  education  of  all  the  people,  and  with  the  lapse  of  an  in- 
definite amount  of  time.  .  .  .  This  association  they  deem  too 
radical.  .  .  .  They  look  with  iU- concealed  uneasiness  upon  those 
who  would  make  each  single  wrongdoing  as  a  fire  bell  in  the  night 
to  alarm  the  conscience  of  the  people.  Their  duty  as  they  see  it 
is  to  service,  but  not  to  protect;  to  sit  silent  if  need  be  in  the  pres- 
ence of  sin,  with  their  eyes  fixed  only  upon  the  numerous  and  en- 
couraging signs  that  this  repubhc  will  in  the  long  run  not  tolerate 
injustice  against  a  class  or  race  among  its  citizens. 

For  this  opinion,  honestly  held,  particularly  when  advocated  by   Attitude  of 

those  in  the  educational  field,  one  can  have  the  fullest  respect  if     .     Associa- 
tion toward 
it  is  consistently  adhered  to,  but  that  is  not  the  pohcy  of  this  as-   the  wrongs 

sociation.    It  is  not  content  to  sit  idly  by  and  see  wrong  done,  even   ^""^  ^"^ 

Negro. 

though  certain  at  heart  that  in  the  long  run  righteousness  will  pre- 
vail, that  the  mills  of  the  gods  grind  exceedingly  fine,  however 
slowly.  ...  It  is  not  for  us  to  compromise,  however  much  others 
may  feel  the  necessity  of  doing  so.  It  is  not  for  us  to  withhold  our 
scorn  and  indignation  when  we  see  colored  men  and  women  outraged, 
robbed,  maimed  or  burned  in  Pennsylvania  or  in  lUinois,  in  Mis- 
sissippi or  in  Georgia.  On  the  contrary,  it  is  our  duty  to  speak 
out  that  everyone  may  know  and  hear.  .  .  . 

132.   A  charge  to  Negro  boys  and  girls  ^ 

The  remark  is  commonly  heard  that  "the  future  of  the  American   The  influ- 

Negro  rests  in  his  own  hands."    This  statement  needs  quaUfication,   ^^^^  °^  P^""' 

sonal  ideals 

for  the  most  helpful  efforts  of  the  Negro  might  be  thwarted  by  ad-  upon  the 

verse  circumstances,  or  by  an  unfriendly  attitude  on  the  part  of   J^^s™  prob- 
lem. 
the  white  population.    Nevertheless,  it  is  true  that  a  powerful  factor 

in  solving  the  problems  of  the  Negro  is  the  attitude  of  the  colored 
people  themselves.  The  leaders  of  the  colored  race  reahze  this, 
and  are  accordingly  devoting  more  and  more  attention  to  the  ideals 
which  young  Negroes  acquire.  A  splendid  charge  to  Negro  boys 
and  girls  was  delivered  by  Robert  Moton  at  the  Tuskegee  Com- 
mencement exercises,  in  May,  1912.  Mr.  Moton,  a  colored  man, 
and  now  principal  of  Tuskegee  Institute,  spoke  in  part  as  follows: 

•  From  Robert  Moton,  "Address  Delivered  at  the  Commencement  Exercises 
at  Tuskegee  Institute,"  May,  191 2. 


3o6  READINGS  IN  AMERICAN  DEMOCRACY 

You  and  I  belong  to  an  undeveloped,  backward  race  that  is  rarely 
for  its  own  sake  taken  into  account  in  the  adjustment  of  man's 
relation  to  man,  but  is  considered  largely  wath  reference  to  the  im- 
pression which  it  makes  upon  the  dominant  Anglo-Saxon.  .  .  . 

The  question  that  the  American  nation  must  face,  and  which  the 
Negro  as  a  part  of  the  nation  should  soberly  and  dispassionately 
consider,  is  the  mutual,  social,  civic,  and  industrial  adjustment  upon 
common  ground  of  two  races,  differing  widely  in  characteristics 
and  diverse  in  physical  pecuharities,  but  aUke  suspicious  and  ahke 
jealous.  .  .  . 

May  I  briefly  remind  you  of  three  very  commonplace  virtues 
that  may  perhaps  help  you  as  you  enter  a  broader,  and,  I  hope,  more 
useful  hfe. 

Be  simple.  —  Simplicity  is  a  quahty  that  is  hardly  hkely  to  be 
overworked;  certainly  it  is  a  very  safe  and  sane  side  on  which  you 
may  profitably  err.  It  is  charged  that  the  educated  Negro  is  greatly 
inclined  toward  the  superficial  and  showy,  that  he  is  much  given 
to  "putting  on  airs."  Don't  be  afraid  or  ashamed  to  be  even  crit- 
icized because  of  natural  unaffectedness,  of  extreme  simpHcity  in 
dress,  in  speech,  in  conduct,   and  in  character.  .  .  . 

As  I  understand  this  institution,  the  object  has  not  been  to  make 
of  you  mere  farmers  and  mechanics,  nor  yet  cooks  and  dressmakers. 
It  has  not  even  tried  to  make  mere  teachers  and  preachers,  although 
it  has  accomphshed  that  task  most  effectively;  but  these  vocations, 
however  well  they  may  have  been  learned,  are  subsidiary  to  the 
great  object  that  hes  at  the  base  of  Tuskegee  Institute.  It  has 
tried,  and  I  hope  it  has  succeeded,  in  making  of  you  men  and  women 
with  strong,  robust,  generous,  courageous,  simple,  Christ-Uke  char- 
acters; that,  my  friends,  is  the  "bed-rock"  upon  which  this  insti- 
tution was  founded  and  upon  which  it  stands.  .  .  . 

Be  self-respecting.  —  I  want  to  ask  you  young  people  always  to 
keep  your  self-respect.  Self-respect  does  not  mean  fawning,  cring- 
ing, or  truckhng.  .  .  .  You  mil  be  careful,  I  am  sure,  not  to  confuse 
self-respect  with  self-conceit;  they  are  sometimes  woefully  mixed 
and  even  by  educated  Negroes,  that  is,  Negroes  who  have  received 
diplomas   from   reputable  institutions. 

I  am  not  unmindful  of  the  conditions  under  which  we  hve.     It 


THE  NEGRO  307 

is  very  easy  for  a  race  to  accept  the  valuation  which  others  set  upon 
it  .  .  .  but  there  is  no  excuse  for  your  going  through  the  world 
with  a  sort  of  self-depreciatory  demeanor  as  if  you  owed  the  rest 
of  mankind  an  apology  for  existing.  .  .  .  Remember  also  that  though 
a  Negro,  and  black,  and  though  belonging  to  a  backward  and  some- 
what undeveloped  race,  God  meant  that  you  should  be  as  honest, 
as  industrious,  as  law-abiding,  as  intelligent,  as  cultivated,  as  polite, 
as  pure,  as  Christ-hke,  and  as  godly  as  any  human  being  that  walks 
on  the  face   of   God's  green   earth. 

Keep  your  courage.  —  There  is  no  reason  why  any  Negro  should  and  cour- 
become  discouraged  or  morbid.  We  believe  in  God.  His  providence  ''^^• 
is  mysterious  and  inscrutable;  but  His  ways  are  just  and  righteous 
altogether.  Suffering  and  disappointment  have  always  found  their 
place  in  the  divine  economy.  .  .  .  The  black  man  has  not  as  yet 
thoroughly  learned  to  have  the  respect  for  his  race  that  is  so  neces- 
sary to  the  making  of  a  great  people.  I  beheve  the  woes  that  God 
has  sent  him  are  but  the  fiery  furnace  through  which  he  is  passing, 
that  is  separating  the  dross  from  the  pure  gold  and  is  welding  the 
Negroes  together  as  a  great  people  for  a  great  purpose. 

There  is  every  reason  for  optimism,  hopefulness.  The  outlook  The  goal. 
was  never  more  encouraging  than  to-day.  The  Negro  never  had 
more  the  respect  and  confidence  of  his  neighbors,  black  and  white, 
than  he  has  to-day.  Neither  has  he  because  of  real  worth  deserved 
that  respect  more  than  he  does  to-day.  .  .  .  The  race  problem  in 
this  country,  I  repeat,  is  simply  a  part  of  the  problem  of  Hfe.  .  .  . 
Race  prejudice  is  as  much  a  fact  as  the  law  of  gravitation  and  it 
is  as  fooUsh  to  ignore  the  operation  of  one  as  of  the  other.  Mournful 
complaint  and  arrogant  criticism  are  as  useless  as  the  crjing  of  a 
baby  against  the  fury  of  a  great  wind.  The  path  of  moral  progress, 
remember,  has  never  taken  a  straight  Une,  but  I  beheve  that  unless 
democracy  is  a  failure  and  Christianity  a  mockery,  it  is  entirely 
feasible  and  practicable  for  the  black  and  white  races  of  America 
to  develop  side  by  .side,  in  peace,  in  harmony,  and  in  mutual  help- 
fulness each  toward  the  other;  living  together  as  "brothers  in 
Christ  without  being  brothers-in-law, "  each  making  its  contributions 
to  the  wealth  and  culture  of  our  beloved  country.  .  .  . 


3o8  READINGS  IN  AMERICAN  DEMOCRACY 

Questions  on  the  foregoing  Readings 

1.  Compare  colored  women  and  children  with  other  groups  of  the 

population   with   respect   to   the   percentage    which   are   bread- 
winners. 

2.  In  what  way  is  the  high  percentage  of  gainfully  employed  colored 

women  and  children  an  undesirable  development? 

3.  Compare   the   total  number  of  Negro  male  breadwinners  in  1910 

with  the  number  of  Negro  females  gainfully  employed  in  1910. 

4.  Name  some  occupations  in  which  Negroes  are  relatively  numerous. 

5.  What   per  cent  of  Negro    breadwinners  is  included  in  the  skilled 

or  professional  groups? 

6.  What   are   the   educational   needs   of   the   Negro   with  respect  to 

elementary  school  education? 

7.  Outline  the  educational  needs  of  the  Negro  with  regard  to  secondary 

schools. 

8.  What  is  the  first  step  in  improving  the  condition  of  Negro  colleges? 

9.  What  can  be  said  as  to  the  Negro's  needs  with  respect   to  agri- 

cultural and  mechanical  schools? 

10.  What  should  be  the  ideals  of  the  teacher  in  Negro  schools? 

11.  Into  what  two  types  may  we  divide  legislation  defining  the  position 

and  rights  of  the  Negro? 

12.  Outline   the  early  development  of  laws  to  provide   for  the  pro- 

tection of  Negroes  in  the  enjoyment  of  places  of  public  resort. 

13.  Outline  the  Federal  Civil  Rights  Act  of  1875. 

14.  What  was  the  attitude  of  the  Supreme  Court  toward  this  act? 

What  was  the  effect  of  this  attitude  upon   further  state  legis- 
lation? 

15.  When  did  Negro  migration  become  a  serious  problem? 

16.  What  is  the  significance  of  the  Negro  migration  to  the  North? 

17.  OutUne  some  constructive  efforts  to  cope  with  the  problems  arising 

out  of  this  migration. 

18.  Discuss  the  causes  of  the  migration  to  the  North. 

19.  What  is  the  object  of  the  National  Association  for  the  Advance- 

ment of  Colored  People? 

20.  Outline  the  viewpoint  of  those  who  believe  the  association  is  too 

radical. 

21.  What  is  the  attitude  of  the  Association  toward  the  injuries  in- 

flicted upon  the  Negro? 

22.  What  is  the  importance  of  simplicity  in  Negro  life? 

23.  Explain   the   nature   of   self-respect   from   the   standpoint   of   the 

Negro. 

24.  Why  is  the  outlook  for  the  Negro  an  optimistic  one? 


CHAPTER  XXIII 

THE   FAMILY 

133.   Economic  disruption  of  the  family  ^ 

From  whatever  angle  the  modern  family  is  studied,  the  conclusion   The  family 

is  inevitable  that  this  most  basic  of  our  social  institutions  is  in  a   '^,  ^^  ^  ?^^^^ 

of  transi- 

state   of    transition    or    readjustment.      Numerous   and   important   tion. 
influences  have  combined  to  disintegrate  the  family  as  it  existed 
in  medieval  times.    Of  these  influences,  one  of  the  most  fundamental 
is  the  economic,  as  Dr.  Lichtenberger  points  out  in  the  following 
selection: 

At  the  beginning  of  the  modern  economic  era  the  family  was  the   Formerly 
economic  unit  of  society.  ...  It  was  usuaUy  large  and  hved  close   *  ^  fif"^ 
to  the  soil.    It  was  an  economic  necessity.  .  .  .  Children  were  reared   economic 
in   the   home.     Their   education   and   training   were   accomplished   ™'^  °   ^°" 
there.     This  had  reference  not  only  to  the  inteUectual,  moral  and 
religious  development,  but  to  the  training  for  a  gainful  occupation, 
and  usually  included  a  "start  in  hfe. "    Production  .  .  .  was  carried 
on  within  the  household.    Food  was  produced  from  the  soil  and  came 
direct  from  garden  and  field  to  the  table.     Flax,  cotton  and  wool 
were   transformed  into   family   clothing   through   the   dexterity    of 
the  housewife.    Shoes  were  cobbled  and  furniture  was  made  by  the 
husband  on  rainy  days.  .  .  . 

Women  were  of  economic  necessity  home-keepers.     Their  time  and  women 
and  skiU  were  required  to  the  utmost.     If  there  existed  incompati-   J^^[|j.  ^^^^g. 
bility  between   husband   and  wife,    the   care   of   children   and   the   keepers, 
economic  necessities  of  the  family  afforded  the  strongest   possible 
incentive   for   adjusting   or   suffering   the   difiiculties. 

Within  two  generations  changed  economic  conditions  have  wrought 

1  From  James  P.  Lichtenberger,  Divorce,  A  Study  in  Social  Causation.    Columbia 
University  Press,  New  York,  1909;  pp.  161-163. 

309 


;io 


READINGS  IN  AMERICAN  DEMOCR.\CY 


Within  re- 
cent times 
profound 
changes 


have  been 

WTOUght 

in  the 
family. 


The  lighten- 
ing of 
household 


cares 


and  its  sig- 
nincance. 


Conclusion. 


the  most  profound  transformations  ever  experienced  by  the  race. 
Within  the  modern  economic  area  population  is  rapidly  becom- 
ing urban,  and  with  the  growth  of  modem  industry  the  economic 
function  of  the  family  is  passing  away.  Children  are  no  longer 
"brought  up"  in  the  home  as  formerly.  Their  education  has  been 
taken  in  hand  by  the  state,  for  which  they  are  removed  from  the 
home  for  several  hours  each  day.  Kindergarten,  pubhc  school 
and  college  accomplish  this  far  more  skilfully  than  former  methods. 
The  religious  training  is  almost  wholly  provided  by  the  Sunday 
School  and  the  Church. 

Occupations  are  taught  in  the  professional  and  technical  schools 
without  the  long  and  unprofitable  period  of  apprenticeship  formerly 
required.  The  function  of  production,  except  of  raw  materials,  has 
passed  over  to  the  shop  and  factory.  The  farmer  produces  fewer 
of  the  articles  of  his  more  elaborate  table  than  formerly,  and  depends 
quite  as  much  for  clothing  and  household  necessities  upon  factory 
production  as  the  dweller  in  the  city.  Much  of  the  cooking,  sewing, 
washing  and  ironing  for  the  family  is  done  better  and  more  cheaply 
in  the  bakery,  factory  and  laundry  than  in  the  home. 

Thus  the  Ughtening  of  household  cares  has  become  one  of  the 
interesting  features  of  the  influence  of  modem  methods  of  industry 
upon  the  institution  of  the  family,  and  herein  Hes  the  hope  of  the 
improved   family   of   the   future. 

But  with  the  passing  of  the  economic  function  the  family  ceases 
to  be  an  economic  unit.  The  members  of  the  household  are  not 
interdependent  as  formerly.  The  home  is  maintained  more  as  a 
comfort  and  a  luxury'  than  as  a  necessity,  the  cost  becomes  more 
burdensome  in  proportion  to  the  service  rendered,  and  the  temp- 
tation to  "break  up  housekeeping"  increases.    It  is  cheaper  to  board. 

In  this  manner  is  being  removed,  to  a  large  extent,  what 
Professor  Sumner  regards  as  one  of  the  most  fundamental  motives 
for  the  origin  of  the  family,  and  what  has  continued  to  be  one  of 
the  strongest  reasons  for  its  perpetuation.  The  new  industry  of 
the  boarding-house  and  the  bachelor  apartment,  and  the  oppor- 
tunities of  individual  employment  offered  in  modem  economic 
production  without  regard  to  sex,  have  shown  their  influence  in  the 
later  age  at  which  marriage  is  contracted  and  probably  also  in  an 


THE  FAMILY  31 1 

increasing  number  of  persons  who  do  not  marry  at  all.     The  same 
opportunities  are  open  to  the  members  of  the  broken  family.  . 

134.   The  struggle  for  home  life  in  the  city  ^ 

The  tendency  of  modem  industry  to  concentrate  large  masses   Relation  of 
of  people  in  cities  has  had  a  profound  effect  upon  the  family.    Urban    '^""'^'"k  "■«•- 
life  offers  the  family  many  advantages  over  the  country  or  the  small   home  life  in 
town,  but  unquestionably  the  maintenance  of  a  normal  home  is   ^'^'-'  "'^'• 
more  difficult  in  the  city  than  in  the  less  heavily  populated  areas. 
A  house  does  not  constitute  a  home,  but  certainly  it  is  one  of  the 
fundamental  conditions  of  home  hfe.    For  this  reason  one  important 
method  of  safeguarding   the   American   home  is  the  correction  of 
bad  housing  conditions,  and  the  provision  of  proper  standards  of 
house  construction  for  the  future.    The  following  outline  of  a  hous-   HousinR  re- 
ing  program  for  Des  Moines,  Iowa,  illustrates  something  of  the  trend   ^j^J^^^'"  °*^ 
of  scientific  housing  reform:  Iowa. 

The  road  to  the  city  that  Des  Moines  of  tomorrow  could  become 
will  be  constructed  only  with  well-considered  plans  and  long-con- 
tinued effort.  The  program  for  progressive  work  should  include 
such   purposes   as   the   following: 

First,  the  goal:    standardized  housing.     It  is  necessar>'  to  hold   The  goal  i: 


IS 


firmly  to  a  clear  view  of  the  fundamental  need.     The   individual   standardized 

housing, 
and  his  home  life  must  be  given  a  higher  value  for  several  reasons. 

One  of  them  is  the  fact  that  the  control  of  tuberculosis  and  other 

communicable  diseases  can  never  be   secured  merely  by  activity 

outside  of  the   house.     The  tenets  of  personal   hygiene  taught  in 

pubhc  must  be  attainable  in  practice  within  every  house,  at  least 

to  the  extent  of  being  able  to  get  an  abundance  of  outside  air,  a 

fair  amount  of  daylight  and  a  convenient  access  to  indispensable 

sanitary  equipment.    •Certain  standards  such  as  a  sink  and  a  water 

closet  for  every  family,  and  an  outside  window  in  ever>'  room,  must 

be  written  down  as  a  minimum  house  equipment  for  normal  family 

life  in  the  city.  .  .  . 

Second,  effective  control  of  new  construction.     A  state  law  is  the 

1  From  the  Housing  Commission  of  the  City  of  Des  Moines  (Iowa),  Report. 

November,  191 7;  pp.  61-64. 


312 


READINGS  IN  AMERICAN  DEMOCR.\CY 


A  state 
housing  law 
is  recom- 
mended. 


The  neces- 
sity of 
proper  reno- 
vation. 


Importance 
of  commu- 
nity coopera- 
tion. 


Subnormal 
li\dng  con- 
ditions. 


New  con- 
struction 
methods 
desirable. 


best  objective.  It  preserves  the  city  life  of  the  state.  It  is  not  so 
much  more  difl&cult  to  secure  than  an  ordinance  in  one  city,  and  all 
cities  profit  from  it.  There  are  not  enough  differences  between  cities 
to  make  varying  ordinances  necessary.  .  .  . 

Third,  center  renovation.  The  city  ought  to  be  able  to  find  a 
middle  path  between  wholesale  and  excessively  expensive  reno- 
vation of  old  houses  attempted  in  a  year  or  two,  and  the  other 
extreme  of  practically  no  renovation  work.  .  .  .  There  are  living 
rooms  and  service  rooms  now  without  any  windows  that  could  have 
skyhghts.  .  .  .  Slimi  spots  in  the  center  of  the  city.  .  .  .  could  all  be 
brought  up  to  a  better  condition  in  less  than  a  decade,  if  the  need 
were  studied  and  one  of  the  areas  renovated  every  other  year.  .  .  . 

Fourth,  commimity  cooperation.  ...  If  a  minimum  amount  of 
sanitary  equipment  is  the  common  right  of  the  pubhc,  for  the  pur- 
poses of  public  health  and  welfare,  equally,  also,  is  it  the  duty  of 
the  pubUc  to  give  that  and  all  parts  of  rented  property  reasonable 
use.  The  children  are  now  being  taught  to  treat  with  respect  public 
school  property,  the  hbrary,  the  parks  and  the  playgrounds.  They 
should  receive  steady  schooHng  in  the  preservation  of  their  own 
property  and  the  house  in  which  they  five.  .  .  . 

There  should  be  a  constant,  forceful  pressure  on  the  families 
that  are  Hving  in  a  subnormal  way.  The  ehmination  of  the  worst 
houses  carmot  be  considered  without  some  thought  for  the  ehmina- 
tion of  the  worst  families.  In  the  lowest  Ufe,  the  house  equipment 
and  the  wretched  house  habits  are  inseparable.  There  are  families 
on  the  verge  of  degeneracy  that  need  oiScial  prodding  and  prosecution; 
there  are  many  families  that  need  education  in  the  care  of  the  house, 
and  there  are  some  that  ought  to  have  help  in  maintaining  a  better 
home.  The  groups  that  are  working  with  these  famihes  at  their 
homes,  such  as  friendly  visitors,  the  truant  and  probation  officers 
and  the  sanitary  men  of  the  health  department,  might  well  be  coun-  m 
seled  with,   for   the   establishment   of   coordination  of   effort.  .  .  • 

Fifth,  new  construction  methods.  The  city  ought  to  determine 
means  for  controlling  not  only  the  opening  of  new  subdivisions 
that  are  -without  sewers  and  water,  but  also  the  occupancy  of  vacant, 
unserved  blocks  situated  in  areas  now  divided  into  lots.  It  ought 
to  be  possible  to  work  out  the  details  for  city  sanitary  districts  in 


THE   FAMILY  313 

which  the  city  services  and  a  minimum  house  equipment  are  a  pre- 
requisite. .  .  . 

135.   Pensions  for  poor  mothers  ^ 

In   191 1   the  Missouri  legislature  passed  a  law  which  provided   The  moth- 

that  there  should  be  paid  out  of  the  state  treasury  an  allowance   "^'  pension 

111  ,       ,  movement 

to  mothers      whose   husbands  are   dead   or   prisoners,  when  such   began  in 

mothers  are  poor  and  have  a  child  and  children  under  the  age  of   ^'^^oun,  m 

1911. 
14  years. "    This  was  the  beginning  of  the  mothers'  pension  move- 
ment, which  has  since  attained  prominence  in  the  majority  of  the 
1  states  of  the  Union.     Pensions  to  mothers  who  are  of  themselves 
unable  properly  to  rear  their  children,  are  not  considered  charity, 
but  a  reimbursement  extended  by  the  state  to  its  most  important 
jsocial  servant.    The  purpose  of  mothers'  pension  laws  is  to  prevent 
the  breaking  up  of  the  home,  when  by  death  or  otherwise  the  natural 
isupport  of  the  family  is  removed.     The  following  is  a  summary  of 
mothers'  pension  laws  in  the  different  states,  as  formulated  by  the 
{Children's  Bureau  in  the  United  States  Department  of  Labor: 
j    Persons  to  whom  aid  may  be  given.  —  The  law  appHes  to  any  parent   Persons  who 
kvho  on  account  of  poverty  is  unable  to  care  properly  for  a  de-   '"^y/eceive 
pendent   or  neglected   child,  but   is   otherwise   a   proper  guardian,    in  the  vari- 
in  Colorado  and  Nebraska;  to  any  parent  or  grandparent  in  Nevada;   ^"^  states, 
to  any  parent  or  guardian  in  Wisconsin.       In  the  other  states  it 
apphes  only  to  mothers.     In  California,  New  Jersey,  Oklahoma  .  .  . 
the  mother  must  be  a  widow  to  receive  the  benefits  of  the  act.    In 
[the  remaining  states  not  only  widows  but  the  following  other  classes 
bf  mothers  with  dependent  children  are  included:    mothers  whose 
husbands  are  in  prison  in  Idaho,  Iowa,  Minnesota,  Missouri,  Ohio, 
Oregon,  South  Dakota,  and  Washington;    mothers  whose  husbands 
ire  in  state  insane  asylums  in  Iowa,  Minnesota,  Missouri,  Oregon, 
md  Washington;    mothers   whose   husbands   are   totally  incapaci- 
:ated,  physically  or  mentally,  in  Illinois,  Minnesota,  Ohio,  Oregon, 
50uth  Dakota,  and  Washington;   deserted  Avives  in  Michigan,  Ohio, 
if  deserted  for  three  years) ,  Pennsylvania,  and  Washington  (if  de- 
ierted  for  one   year).  .  .  , 

I  •  From  the  United  States  Department  of  Labor.  Children's  Bureau,  Laws  Re- 
ating  to  Mothers'  Pensions  in  the  United  Stales,  Denmark  and  Ninv  Zealand.  Wash- 
ngton,  1914;  pp.  9-1 1. 


314 


READINGS  IN  AMERICAN  DEMOCRACY 


Conditions 
governing 
the  distribu- 
tion of  pub- 
lic aid: 

(a) 
degree  of 
poverty, 


(b) 
conditions 
in  the 
home, 


(c) 
and 
residence. 


Age  of  the 
child  for 
whose  care 
public  aid 
is  extended. 


Conditions  on  which  aid  is  given,  (a)  Degree  of  poverty.  —  The 
condition  of  receiving  aid  under  these  laws  is  uniformly  that  of 
poverty,  with  certain  definitions  added  in  some  of  the  laws.  In 
Washington  the  mother  must  be  destitute;  in  New  Hampshire  and 
Utah  she  must  be  dependent  entirely  on  her  own  efforts  for  support; 
in  Oregon,  whoUy  or  partly  dependent;  in  lUinois  she  may  not  o\\ti 
real  property  or  personal  property  other  than  household  effects. 
In  Idaho,  lUinois,  Missouri,  New  Hampshire,  Ohio,  South  Dakota, 
and  Utah  the  aid  must  in  the  judgment  of  the  court  be  necessary 
to  save  the  child  from  neglect;  in  New  Jersey,  from  becoming  a 
pubhc  charge. 

(b)  Home  conditions.  —  In  most  of  the  laws  the  requirement  is 
made  that  the  mother  is  a  fit  person,  morally  and  physically,  to 
bring  up  her  children  and  that  it  is  for  the  welfare  of  the  child  to 
remain  at  home.  In  Idaho,  lUinois,  ISIissouri,  New  Hampshire, 
Ohio,  South  Dakota,  and  Utah  it  is  made  conditional  that  the  child 
or  children  be  living  with  the  mother  and  that  the  mother  shall 
not  work  regularly  away  from  home.  In  South  Dakota  she  may  not 
be  absent  for  work  more  than  one  day  a  week;  in  Ilhnois  and  Ohio 
the  amount  of  time  is  left  to  the  discretion  of  the  court. 

(c)  Residence.  —  In  Washington  and  Minnesota  one  year's  resi- 
dence in  the  county  is  reqtiired;  in  Idaho,  Missouri,  New  Hamp- 
shire, Ohio,  and  Utah  two  years'  residence;  in  Ilhnois  and  Penn- 
sylvania three  years'  residence.  Some  of  the  states  require  "legal 
residence"  in  the  state;  Minnesota,  two  years'  residence;  Cali- 
fornia and  INIassachusetts,  three  years;  Cahfomia  and  Ilhnois  re- 
quire, in  addition,  that  the  apphcant  be  a  citizen  of  the  United  States. 

Age  of  child.  —  The  maximum  age  of  a  child  on  whose  account 
an  allowance  may  be  made  is  14  years  of  age  in  California,  Illinois 
(may  be  extended  to  16  years  if  child  is  ill  or  incapacitated  for  work), 
Iowa,  Massachusetts,  ]\Iinnesota,  Missouri,  South  Dakota,  and  Wis- 
consin; 15  in  Idaho,  Utah,  and  Washington;  16  in  Colorado,  New 
Hampshire,  New  Jersey,  Oklahoma,  and  Oregon;  17  in  Michigan; 
and  18  in  Nebraska  and  Nevada.  The  legal  working  age  is  the 
limit  in  Ohio  and  Pennsylvania. 

Amount  of  allowance.  —  The  maximum  allowance  for  one  child 
is  $2  a  week  in  Iowa,  $3  a  week  in  Michigan.    It  is  $9  a  month  for 


ance. 


THE   FAMILY  31S 

one  child,  $14  for  two  children,  and  $4  for  each  additional  ohild  in  Amount  of 
New  Jersey;  $10  a  month  for  each  child  in  Minnesota  and  Nebraska;  J;*^^/  ' 
$10  a  month  for  one  child  and  $5  for  each  additional  child  in  Idaho, 
Missouri  {i.e.  Jackson  County),  New  Hampshire,  and  Utah;  $10 
for  one  child  and  $7.50  for  each  additional  child  in  Oregon;  $12 
for  one  child  and  $4  for  each  additional  child  in  Wisconsin  .  .  .  ; 
$12  for  one  child,  $20  for  two  children,  $26  for  three  children,  and 
$5  for  each  additional  child  in  Pennsylvania;  $12.50  for  each  child 
in  CaUfomia  ($6. 2 5  a  month  by  the  state  and  a  Hke  amount  by  the 
city  or  county);  $15  for  one  child  and  $5  for  each  additional  child 
in  Washington;  $15  for  one  child  and  $7  for  each  additional  child 
in  Ohio  and  South  Dakota;  $15  for  one  child  and  $10  for  each  addi- 
tional child  in  lUinois  (not  to  exceed  in  all  $50  for  any  one  family). 
In  Colorado,  Massachusetts,  and  Nevada  no  maximum  is  set,  but 
the  amoimt  must  be  sufficient  to  care  properly  for  the  child,  with 
the  restriction  in  Nevada  that  it  may  not  exceed  what  it  would 
cost  to  maintain  and  educate  the  child  in  a  county  or  state  home.  .  .  . 


136.   A  proposed  uniform  divorce  law  ^ 

One  indication  of  family  instability  is  the  divorce  rate.     Students   Seriousness 

of   American   social   conditions   have   frequently   pointed  out  that   °   *■  ^    .' 

^  .'     r-  vorce  evil, 

in  the  United  States  the  divorce  rate  is  not  only  very  high,  but  is   and  the 

rapidly  increasing.     Of  the  numerous  remedies  proposed  for  this   P''°P?^^    '^^ 
^      •'  o  f     f  ^  imiform 

condition,  one  of  the  most  interesting  is  that  of  a  uniform  divorce    divorce  law. 
law  throughout  the  United  States.     In  1906  a  National  Congress 
on   Uniform   Divorce  Laws   met   in   Philadelphia  and   proposed   a 
statute,  from  which  the  following  passage  is  an  extract: 


An  Act  Regulating  Annulment  of  Marriage  and  Divorce 

Chapter  I  —  Jurisdictional  Provisions 

Article  I  —  Annulment  of  marriage 
Section  i.     Causes  for  annulment. 

A  marriage  may  be  annulled  for  any  of  the  following  causes  exist- 
ing at  the  time  of  the  marriage. 

'  From  the  United  States  Bureau  of  the  Census,  Special  Report  on  Marriage 
and  Divorce,  1867-1906.    Washington,  1909.     Part  i,  pp.  272-273. 


3i6 


READINGS  IN  AMERICAN  DEMOCRACY 


Causes 
which  may 
justify  an 
annulment 
of  marriage. 


(a)  Incurable  physical  impotency.  ... 

(b)  Consanguinity  or  affinity  according  to  the  table  of  degrees 
estabUshed  by  law,  at  the  suit  of  either  party.  .  .  . 

(c)  When  such  marriage  was  contracted  while  either  of  the  parties 
thereto  had  a  husband  or  wife  hving,  at  the  suit  of  either  party. 

(d)  Fraud,  force,  or  coercion,  at  the  suit  of  the  innocent  and 
injured  party,  unless  the  marriage  has  been  confirmed  by  the  acts 
of  the  injured  party. 

(e)  Insanity  of  either   party.  .  .  . 

(/)  At  the  suit  of  the  wife  when  she  was  under  the  age  of  i6 
years  at  the  time  of  the  marriage,  unless  such  marriage  be  confirmed 
by  her  after  arriving  at  such  age. 

(g)  At  the  suit  of  the  husband  when  he  was  under  the  age  of  i8 
at  the  time  of  the  marriage,  unless  such  marriage  be  confirmed  by 
him  after  arriving  at  such  age. 


Article  II  —  Divorce 
Section  2.    Kinds  of.    Divorce  shall  be  of  two  kinds:    (a)   Divorce 
from  the  bonds  of    matrimony.   ...   (ft)    Divorce -from  bed   and 
board.  ... 


Causes  for 
divorce 
from  the 
bonds  of 
matrimony. 


Article  III  —  Divorce  from  the  bonds  of  matrimony 

Section  3.     Causes  for. 

The  causes  for  divorce  from  the  bonds  of  matrimony  shall   be.* 

(o)  Adultery. 

{b)  Bigamy,  at  the  suit  of  the  innocent  and  injured  party  to  the 
first   marriage. 

if)  Conviction  and  sentence  for  crime  .  .  .  followed  by  a  con- 
tinuous imprisonment  for  at  least  two  years,  or  in  the  case  of 
indeterminate  sentence,  for  at  least  one  year.  .  .  . 

{d)  Extreme   cruelty,  on  the  part  of  either  husband  or  wife.  .  .  . 

{e)  Wnful  desertion  for  two  years. 

(/)  Habitual  drunkenness  for  two  years. 


Article   IV  —  Divorce  from>  bed  and  hoard 

Section  4.    Causes   for. 

The  causes  for  divorce  from  bed  and  board  shall  be: 


THE   FAMILY  ^17 

(a)  Adultery.  .  Causes  for 

(b)  Bigamy,  at  the  suit  of  the  innocent  and  injured  party  to  the  ^i^orcc 

from  bed 

first  marriage.  and  board. 

(c)  Conviction  and  sentence  for  crime  .  .  .  followed  by  a  con- 
tinuous imprisonment  for  at  least  two  years,  or  in  the  case  of 
indeterminate  sentence,  for  at  least  one  year.  .  .  . 

(d)  Extreme  cruelty,  on  the  part  of  either  husband  or  wife.  .  .  . 

(e)  Wilful   desertion  for   two   years. 

(/)  Habitual  drunkenness  for  two  years. 
(g)  Hopeless  insanity  of  the  husband. 

Article  V  —  Bars  to  relief 

Section   5.      When   decree   shaU   be   denied.  Bars  to 

No  decree  for  divorce  shall  be  granted  if  it  appears  to  the  satis-   ""^ 

faction  of  the  court  that  the  suit  has  been  brought  by  coUusion, 

or  that  the  plaintiff  has  procured  or  connived  at  the  offense  charged, 

or  has  condoned  it,  or  has  been  guilty  of  adultery  not  condoned.  .  .  . 


required 


Article  VIII  —  Evidence 
Section  14.     Proof  required.  Proof 

No  decree   for  annulment   of   marriage,  or   of   divorce,  shall   be 

granted  unless  the  cause  is  shown  by  afi&rmative  proof  aside  from 

any  admission  on  the  part  of  the  defendant.  ... 

Article  IX  —  Decrees 

Section   16.     Rule  for  decree  nisi.  Decrfee  nisi. 

If  after  hearing  of  any  cause,  or  after  a  jury  trial  resulting  in  a  ver- 
dict for  the  plaintiff,  the  court  shall  be  of  opinion  that  the  plaintiff 
is  entitled  to  a  decree  annulling  the  marriage,  or  to  a  decree  for  di- 
vorce from  the  bonds  of  matrimony,  a  decree  nisi  shall  be  entered. 

Section  17.     Final  decrees,  entry  of. 

A  decree  nisi  shall  become  absolute  after  the  expiration  of  one 
year  from  the  entry  thereof,  unless  appealed  from  or  proceedings 
for  review  are  pending,  or  the  court  before  the  expiration  of  said 
period  for  suflficient  cause,  .  .  .  otherwise  orders;  and  at  the  expi- 
ration of  one  year  such  final  and  absolute  decree .  shall  then  be 
entered,  upon  application  to  the  court  by  the  plaintiff,  unless  prior 
to  that  time  cause  be  shown  to  the  contrary. 


3i8 


READINGS  IN  AMERICAN  DEMOCRACY 


Decree  in 
the  case  of 
divorce 
from  bed 
and  board. 


Section  i8.  Decree  in  the  case  of  divorce  from  bed  and  board, 
terms  of. 

In  all  cases  of  divorce  from  bed  and  board  for  any  of  the  causes 
specified  in  section  4  of  this  act,  the  court  may  decree  a  separation 
forever  thereafter,  or  for  a  Hmited  time,  as  shall  seem  just  and  rea- 
sonable, with  a  provision  that  in  case  of  a  reconciliation  at  any 
time  thereafter,  the  parties  may  apply  for  a  revocation  or  suspen- 
sion of  the  decree;  and  upon  such  application  the  court  shall  make 
such  order  as  may  be  just  and  reasonable.  .  .  . 


Education 
versus  leg- 
islation as 
a  remedy 
for  family 
instability. 


A  state 
program  of 
education 
for  the 
home. 


State  super- 
vision. 


137.   Education  for  home-making  ^ 

Although  wisely  drawn  and  carefuUy  administered  marriage  and 
divorce  laws  wiU  undoubtedly  reduce  the  number  of  unsuccessful 
families,  legislation  is  limited  in  its  influence  upon  family  instabil- 
ity. Legislation  attacks  symptoms,  while  education  tends  to  remove 
the  fundamental  causes  of  unsuccessful  marriages.  While  legisla- 
tion remains  an  important  concern,  therefore,  an  increasing  amount 
of  attention  is  being  given  to  the  preparation  of  young  people  for 
home-making.  At  the  present  time  an  important  element  in  this 
educational  program  is  the  attempt  to  give  young  people,  and  espe- 
cially girls,  a  knowledge  of  those  household  arts  which  are  fundamen- 
tal to  home-making.  The  following  summary  of  a  state  program  of 
education  for  the  home  is  from  a  report  by  the  Bureau  of  Education 
in  the  United  States  Department  of  the  Interior: 

There  is  presented  herewith,  in  summary,  a  brief  statement  of 
points  comprising  a  state  program  of  education  for  the  home  as  they 
may,  with  advantage,  be  expressed  in  its  school  legislation. 

1.  A  requirement  that  household  arts  be  taught  in  every  elemen- 
tary school,  city  and  rural. 

2.  State  supervision  of  household-arts  education  by  an  expert 
inspector,  preferably  an  assistant  attached  to  the  office  of  the  state 
superintendent  of  schools,  who  can  give  direction  to  the  develop- 
ment  of   a  progressive   program. 

1  From  the  United  States  Department  of  the  Interior,  Bureau  of  Education. 
Bulletin,  1914,  No.  37.  "Education  for  the  Home."  Washington,  igis-  Part  11, 
pp.  46-47- 


THE   FAMILY  319 

3.  Home  economics  included  as  a  part  of  the  normal-school  prep-   The  prepa- 

aration  of  every  grade  teacher,  and  as  a  part  of  the  course  in  all   ''^^'°"  °^ 

teachers, 
training  classes  for  teachers,  city  and  rural,  so  that  household-arts 

teaching  may  be  included  in  the  grade  work  of  the  regular  teacher. 

4.  A  certificate  for  special  teachers  of  household  arts  requiring 
not  less  than  two  years  of  professional  training  beyond  the  high 
school,  and  for  supervisory  teachers  a  three-year  or,  preferably,  ' 
a  full  four-year   course. 

5.  A  state  grant  toward  the  salary  of  special  teachers  of  house-   Salary, 
hold  arts  and  supervisors  of  household  arts  —  that  is,  of  teachers 

with  the  specified  preparations  who  devote  full  time  to  household 
teaching. 

6.  A  system  of  supervision  of  household-arts  teaching  in  rural   Supervision 
schools,   through  a  visiting   teacher   who  gives  special  instruction   "^/'^^^^ 
and  who  aids  the  regular  teacher  in  this  special  field  .  .  .   ;    by  a 

system  of  consolidation  of  rural  schools;  or  by  the  Minnesota  system 
of  associating  rural  schools  with  a  central  school. 

7.  In  secondary  education  encouragement  of  household  science 
teaching  in  all  public  high  schools;  first  by  state  grants  toward 
teacher's  salary,  and  ultimately  by  a  requirement  that  the  subject 
be  offered  at   least   as   an   elective. 

8.  The  recognition  of  household  arts  and  home-making  in  the  new   Vocational 
program  of  vocational  education  by  giving  these  subjects  a  place   ^^^^cation  in 
coordinate  with  training  for  industry,   commerce,  and  agriculture,    types  of 

9.  Prevocational  classes  of  the  seventh  and  eighth  grades  in  house-   ^'^"oo'^- 
hold  arts  and  in  other  fields  to  hold  pupils  who  now  leave  school  — 

but  not  to  encroach  on  fundamental  education  of  a  general  character. 

10.  On  the  secondary  level,  distinct  vocational  training  in  house- 
hold arts  and  in  other  fields  —  by  day  schools,  or  part-time  contin- 
uation schools  at  daytime  hours,  or  by  evening  classes  to  be  done 
away  with  as  soon  as  the  part-time  continuation  school  at  daytime 
hours  can  be  introduced.  .  .  . 

11.  Higher  institutions,  normal  schools,  technical  institutes,  and 
colleges  will  provide  vocational  instruction  upon  a  higher  level. 

12.  The  program  of  extension  education  to  reach  the  homemakers   Extension 
of  the  present  generation  to  be  carried  out  both  in  city  and  country,    "^y^j^  "\ 
In  the  city  this  involves  lectures,  day  and  evening  classes  under  the   country. 


320 


READINGS  IN  AMERICAN  DEMOCR.\CY 


public  schools,  and  instruction  by  settlements,  philanthropic  soc- 
ieties, churches,  and  other  agencies  through  classes,  visiting  house- 
keepers, home  schools,  or  model  flats,  and  other  means.  In  the 
country  the  prime  need  is  for  movable  schools  of  homemaking,  and 
visiting  advisory  teachers  of  housekeeping,  whose  work  as  consultants 
may  be  developed  in  connection  with  the  farm  demonstration  work 
in  agriculture.  Meanwhile  women's  institutes,  homemaking  clubs, 
correspondence  courses,  housewives'  bulletins,  and  similar  agencies 
are  utilized  increasingly  by  agricultural  colleges  and  local  schools 
to  reach  the  rural  home. 


Importance 
of  the 

ideals  which 
are  held  by 
prospective 
husband 
and  wife. 


Funda- 
mental sig- 
nificance of 
the  family. 


The  basic 
remedy  for 
family  in- 
stability. 


138.   The  attitude  of  young  people  toward  marriage^ 

Even  more  important,  perhaps,  than  training  in  the  fundamental 
household  arts,  is  the  attitude  of  the  young  man  and  young  woman 
toward  marriage.  The  most  careful  preparation  of  a  young  man 
as  a  breadwinner,  and  the  most  skilful  management  of  household 
economies  by  the  young  w-oman,  will  not  guarantee  a  successful 
and  happy  home  if  the  ideals  of  husband  and  wiie  are  fundamentally 
wrong.  The  exaggeration  of  individualism,  the  undue  insistence 
upon  ambition,  social  prestige,  and  personal  pleasure,  the  un\N'iUing- 
ness  to  make  the  mutual  concessions  necessary  to  a  successful  mar- 
riage, all  these  factors  render  highly  important  the  attitude  of  young 
people  toward  marriage.  In  the  following  passage  the  ideals  which 
ought  to  motivate  the  prospective  husband  and  wife  are  outhned 
by  Raymond  Calkins: 

Doubtless  the  problem  of  the  farruly  is  the  most  serious  of  all  our 
social  problems,  for  the  simple  reason  that  it  underUes  them  all. 
It  is  precisely  because  the  integrity  and  coherence  of  the  family  group 
are  the  test  of  American  civilization  that  modem  social  observers 
are  justly  filled  with  alarm  when  they  discover  its  steady  and  even 
rapid  disintegration.  .  .  . 

[And  what  is  the  remedy  for  this  disintegration?  The  tightening 
of  marriage  and  divorce  laws  and  other  legislative  remedies  are  ad- 
vocated by  many  reformers.]  Yet  all  of  these  suggestions,  however 
important,  fail  to  go  to  the  root  of  the  matter.     For  the  problem  of 

*  From  Raymond  Calkins,  The  Christian  Idea  in  the  Modern  World.  The  Pilgrim 
Press,  Boston,  1918;  pp.  63-66. 


THE  FAMILY  321 

the  family,  ultimately,  is  not  "the  result  of  a  defective  social  arrange- 
ment, but  of  a  defective  moral  creed."  Its  solution  therefore  must 
be  sought  not  in  the  sphere  of  legislation  or  of  economic  adjustment, 
but  in  the  regulation  of  the  impulses  and  affections  of  the  human 
heart.  It  is  precisely  the  operation  of  the  christian  idea  in  the  life 
of  the  individual  that  alone  will  solve  the  problem  of  family  life.  .  .  . 

The  arch-enemy  of  the  family,  and  of  any  kind  of  associated  life.    Selfishness 
is  the  selfish  wiU.    The  real  foe  of  family  life  is  the  untamed  Adam   ^^^  ^^^^' 

enemy  of 
of  the  human  heart,  a  deep-seated,  obstinate  and  inveterate  egotism,    the  family. 

arrant  and  unmitigated  selfishness.     Family  disintegration  is  simply  a 

modem  recrudescence  of  the  selfishness  of  Cain.  Elementary  as  such 

a  proposition  is,  .  .  .  the  discovery  that  it  is  true  brings  to  many 

people  the  shock  of  surprise.    They  have  thought  of  marriage  and  the 

life  of  the  home  as  simply  another  way  of  realizing  selfish  desires 

and  ambitions,  and   suddenly  they  find  themselves  involved  in  a 

moral   situation  that   demands  of   them  the  continued  exercise  of 

the   generous  instinct  of   self-forgetfulness,    the  foregoing  of   their 

own  desires  and  wills. 

This  they  are  unprepared  to  perform.    Their  idea  is  both  to  have   The  funda- 

their  own  selfish  way  and  a  home  also,  and  it  is  a  great  revelation  to   "lental  law 

of  family 
them  to  discover  that  the  thing  cannot  be  done.    It  is  selfishness  that   Ufe. 

breaks  up  a  home.    It  makes  no  difference  what  form  that  selfishness 

may  take.  It  may  take  the  form  of  actual  brutahty,  of  purely  material 

conceptions  of  living,  or  of  ungenerous  self-consideration  or  a  petty 

disregard  of  others'  feehngs  and  refined  cruelties  of  speech.     The 

fundamental  law  of  the  family  life  is  mutual  consideration  and  good 

will.    Upon  that  spiritual  foundation  the  family  rests.  Let  one  violate 

that  law,  and  he  precipitates  an  inevitable  and  tragic  coUision  of 

forces  that  must  result  in  the  wreckage  of  human  fife  and  happiness. 

In  other  words,  it  is  only  as  the  christian  idea  is  recognized  and    Conclusion. 

put  into  practical  operation  that  the  gravest  of  our  social  problems 

can  be  solved.   Nothing  will  counteract  this  social  disease  and  prevent 

its  spread  but  the  education  of  the  individual  in  the  moral  ideas  of 

Jesus.     Not  only  are  those  ideas  practicable  in  this  most  intimate 

and  fundamental  of  human  relationships,  but  they  must  positively 

be  practised  if  those  relationships  are  themselves  to  be  preserved 

and  perpetuated. 


322  READINGS   IN   AMERICAN   DEMOCIL\CY 

Questions  on  the  foregoing  Readings 

1.  Name  an  important  influence   which  has  helped  to  disintegrate 

the  family. 

2.  Explain   what   is   meant   by   the   statement    that   formerly   "  the 

family  was  the  economic  unit  of  society." 
3     What  is  the  relation  of  urban  development  to  the  family? 

4.  What  is  the  significance  of  the  fact  that  within  recent  times  house- 

hold cares  have  lightened? 

5.  What  is  the  relation  of  the  house  to  the  home? 

6.  Outline  the  Des  Moines  housing  program  with  respect  to  stand- 

ardized housing. 

7.  What  is  the  advantage  of  a  state  housing  law,  instead  of  numerous 

city  ordinances  on  housing? 

8.  What  is  meant  by  center  renovation? 

9.  What   is   the   importance   of   community   cooperation   in   housing 

reform? 
10.    State    the    family   problem    with    reference    to    subnormal    living 

conditions. 
II     When  and  where  did  the  mothers'  pension  movement  begin  in  the 

United  States? 

12.  Summarize   the  mothers'  pension  laws  of  the  United  States  with 

reference  to  the  type  of  persons  who  may  receive  aid. 

13.  Under  what  conditions  may  aid  be  received? 

14.  Compare  mothers'  pension  laws  in  the  various  states  with  reference 

to  the  age  of  a  child   on  whose  account  aid  is  allowed. 

15.  Compare  the  various  states  legislating  on  mothers'  pensions  with 

regard  to  the  amount  of  the  allowance. 

16.  By  what  body  was  a  uniform  divorce  law  proposed  in  1906? 

17.  Summarize   the   proposed    law   with   reference   to   the   causes   for 

which  a  marriage  might  be  annulled. 

18.  What  two  types  of  divorce  did  the  law  cover? 

19.  Give  some  of  the  important  causes  which  might  be  grounds  for 

either  type  of  divorce. 

20.  What  did  the  proposed  law  have  to  say  concerning  evidence? 

21.  What  different  types  of  decrees  did  the  law  proxdde  for? 

22.  What  is  the  fundamental  aim  of  education  for  home-making? 

23.  Summarize  a  state  program  of  education  for  the  home. 

24.  What    factors    render    important    the    attitude    of   young    people 

toward  marriage? 

25.  What,  according  to  Dr.  Calkins,  is  the  arch-enemy  of  the  family? 


CHAPTER  XXIV 

DEPENDENCY:    ITS   RELIEF  AND   PREVENTION 
139.    Instability  of  the  urban  neighborhood  ^ 

An  ever-present  problem  in  American  social  life  is  the  care  and   Dependency 
treatment  of  those  individuals  who  are  dependent  for  the  necessities  ^?  "^®  ^^^'^' 

tion  to  ur- 
of  life  upon  persons  or  agencies  outside  their  irmnediate  families,    ban  life. 

The  problem  of  the  destitute,  the  sick,  the  mentally  defective,  and 
the  otherwise  dependent,  is  met  with  in  every  type  of  community, 
but  on  a  particularly  large  scale  in  our  great  cities.  The  rapid  develop- 
ment of  industrial  cities,  and  the  evils  of  unregulated  neighborhood 
growth  in  urban  districts,  have  combined  to  accentuate  the  problem 
of  dependency  in  the  city.  Dependency  is  also  related  to  the  mobihty 
of  the  urban  neighborhood,  as  Mr.  McKenzie  points  out  in  the  follow- 
ing selection: 

That  the  mobihty  of  modem  Hfe  is  intimately  connected  with   The  mobility 
many  of  our  social  problems  there  is  general  consensus  of  opinion.    °.   modem 
Assuming  that  a  reasonable  amount  of  mobihty  is  both  inevitable 
and  desirable,  nevertheless  it  is  unquestionably  true  that  the  excessive 
population  movements  of  modem  times  are  fraught  with  many  serious 
consequences. 

Perhaps  the  most  obvious  efEect  of  the  mobihty  of  the  population  and  its 
within  a  city  is  the  striking  instabihty  of  local  hfe.  Neighborhoods  °^°^^  ^^'^' 
are  in  a  constant  process  of  change;  some  improving,  others  deterio- 
rating. Changes  in  incomes  and  rents  are  almost  immediately  regis- 
tered in  change  of  family  domicile.  Strengthened  economic  status 
usually  imphes  the  movement  of  a  family  from  a  poorer  to  a  better 
neighborhood,  while  weakened  economic  status  means  that  the 
family  must  retire  to  a  cheaper  district.  So  in  every  city  we  have 
two  general  types  of  neighborhood;   the  one  whose  inhabitants  have 

'  From  the  American  Journal  of  Sociology,  Vol.  XXVII,  No.  2,  September, 
1921.    (R.  D.  McKenzie,  "The  Neighborhood,"  etc.);   pp.  157-159,  161-162,  167. 

323 


324 


READINGS  IN  AMERICAN  DEMOCRACY 


Mobility  of 
population 
handicaps 
the  social 
worker. 


Social 
causes  of 
intercom- 
munity mi- 
gration. 


Chief  cause 
of  migration 
among  wage- 
earners. 


Mobility 
within  the 
community. 


located  there  on  the  basis  of  personal  choice,  and  the  other  whose 
inhabitants  have  located  there  as  the  result  of  economic  compulsion. 
The  former  .  .  .  contains  the  possibilities  for  the  development  of 
neighborhood  sentiment  and  organization,  while  the  latter  lacks  the 
necessary  elements  for  reconstruction.  ... 

[Mobility  of  population  gives  rise  to  problems  which  are  the  con- 
cern of  social  workers.]  Organizations  dealing  with  dehnquency 
and  dependency  are  hampered  in  their  efforts  by  the  frequent  move- 
ments of  their  "cases."  Similarly  the  church,  trade  union,  and  other 
voluntary  forms  of  association  lose  in  their  efficiency  through  the 
rapid  turnover  of  the  local  membership  lists.  .  .  . 

[It  is  important  to  notice  the  social  causes  of  intercommunity 
migration.]  The  sudden  change  from  a  predominantly  agricultural 
to  a  predominantly  industrial  society  has  occasioned  a  mobility  of 
life  unknown  before.  As  long  as  the  soil  furnished  the  chief  basis 
of  economic  income  man  was  obliged  to  live  a  comparatively  stable 
Ufe  in  a  fixed  and  definite  locaUty.  With  the  development  of  the 
modem  capitalistic  regime,  the  presence  of  the  individual  is  no  longer 
necessary  to  insure  the  productivity  and  security  of  his  property.  .  .  . 
He  is  thus  left  free  to  Uve,  if  he  so  desires,  a  nomad  life.  Of  course 
all  classes  in  society  are  not  equally  free  to  move  about.  The  middle- 
class  tradesman  and  many  of  the  professional  groups  are  more  or 
less  tied  to  definite  locahties  by  the  very  nature  of  their  work.  On 
the  other  hand,  the  well-to-do  and  the  day-laborer  are  free  to  move 
almost  at  wiU. 

Our  modem  factory  system  is  the  chief  cause  of  the  present  migra- 
tory tendencies  of  the  wage-earning  class.  .  .  .  "Seasonal  or  inter- 
mittent occupations,  temporary  jobs,  commercial  depressions,  occa- 
sional unemployment,  and  a  general  sense  of  the  lack  of  permanency 
in  the  tenure  of  their  industrial  positions,  pull  settled  families  up 
by  the  roots  and  seldom  leave  them  long  enough  in  one  place  to  take 
root  again.  Our  manual  workers  are  more  and  more  transient.  Many 
among  them  are  forced  to  become  tramping  famihes." 

Moreover,  change  of  residence  from  one  section  to  another  within 
the  community  is  quite  as  disturbing  to  neighborhood  assocation  as 
is  movement  from  one  community  to  another.  .  .  . 

Again,  there  is  a  type  of  mobility  that  is  not  indicated  by  change 


DEPENDENCY:    ITS    RELIEF    AND    PREVENTION      325 

of  residence,  but  which  is  almost  as  significant  from  the  standpoint  Another 
of  neighborhood  Ufe.  This  is  measured  by  the  ability  of  the  indi-  [Y,?*^  °^  '"^ 
vidual,  due  to  modern  methods  of  communication,  to  utiUze  the 
larger  social  environment  afforded  by  the  community  as  a  whole. 
The  automobile,  street  car,  telephone,  and  press,  together  with  the 
increased  leisure  time,  have  all  contributed  greatly  to  the  break- 
down of  neighborhood  ties.  ... 

140.   The  diagnosis  of  dependency  ^ 

Social  workers  who  come  into  intimate  contact  with  the  dependent  The  com- 

classes  are  obliged  constantly  to  recognize  the  fact  that  in  the  majority  P]^^  nature 

of  cases  dependency  exists,  not  as  the  restilt  of  a  single  influence,  ency  ne- 

but  because  of  a  number  of  causes.     These  causes,  sometimes  con-   ^^^^sitates 

careful 
verdantly  classified  as  economic,  social,  poHtical  or  personal,  generally   diagnosis. 

interlock  with  one  another  in  a  most  baffling  way.  In  view  of  this 
complexity,  a  case  of  dependency  demands  careful  and  detailed 
diagnosis,  if  the  dependent  individual  or  family  is  to  be  helped  back 
to  normal  life.  In  the  following  extract  from  a  report  of  the  Detroit 
Associated  Charities  are  two  typical  cases,  and,  in  each  instance, 
the  diagnosis  of  the  causes  of  dependency: 

CASE  NO.  376 

The  family  consists  of  father,  age  34;    mother,  age  30,  and  five  A  family  is 
children  ranging  in  ages  from  3  to  10  years.  helped  to 

The  case  first  became  known  to  the  United  Jewish  Charities  in  Detroit. 
1910,  to  whom  the  family  had  been  sent  by  ...  an  organization 
which  assists  immigrant  families  to  move  from  the  congested  dis- 
tricts of  New  York  City  to  the  interior  of  the  country.  Upon  arriving 
in  Detroit  the  family  was  given  financial  aid  for  a  period  of  one 
month,  and  the  man  was  placed  in  employment. 

In  November,  191 1,  the  family  again  applied  to  the  United  Jewish   New  difiS- 

Charities  because  of  economic  need.    The  man  was  unemployed  and   ^^"'^s- 

the  woman  iU.     Payment  of  rent  and  emergency  reUef  was  asked 

for  and  granted.    A  stove  was  also  given  the  family.    Failing  to  find 

work,  the  man  became  dissatisfied,  and  the  family  returned  of  its 

own  accord  to  New  York   City. 

'  From  the  Detroit  Associated  Charities,  Trouble  Cases.    Detroit,  Mich.,  igig; 
pp.  18-ig,  32-33. 


326 


READINGS  IN  AMERICAN  DEMOCRACY 


Relief  again 
received. 


Case  com- 
ment and 


diagnosis. 


In  May,  191 2,  the  family  again  returned  to  Detroit  on  its  own 
volition.  There  is  no  record  of  aid  being  given  to  this  family  until 
April,  1913,  when  the  man  was  sent  to  the  hospital.  Relief  was  given 
to  the  family  by  the  United  Jewish  Charities  and  the  woman  was 
supplied  with  free  medical  service  during  maternity.  .  .  . 

Case  Comment:  Cases  of  this  type  reveal  chiefly  economic  prob- 
lems that  are  fairly  numerous.  .  .  .  The  work  of  the  agencies  on 
the  case  appears  to  have  been  helpful  and  gradually  the  family 
seems  to  have  attained  self-support.  .  .  . 

Diagnosis:  Attempt  to  improve  condition  by  removal  from  con- 
gested eastern  city,  followed  by  unemployment,  and  insufficient 
income  for  health  needs.  .  .  . 


Another 
case: 

Family  des- 
titute, man 
out  of 
work,  and 
living  con- 
ditions bad. 


Further 
trouble. 


Transporta- 
tion refused. 


CASE  NO,   821 

On  the  last  day  of  191 5  the  L.  family  came  to  the  attention  of  the 
Poor  Commission.  One  week  previously,  this  American  family, 
consisting  of  father,  age  35,  mother  30,  and  six  children,  from  i  to 
12  years,  had  left  the  farm  owned  by  the  man's  father  because  it' 
was  too  smaU  to  furnish  adequate  support  to  both  families,  and  had 
come  to  this  city  to  live  with  the  woman's  mother,  a  widow,  who 
was  herself  receiving  relief  from  the  Poor  Commission.  .  .  .  When 
the  investigator  for  the  Poor  Commission  found  the  family,  ten  of 
them  were  Uving  in  one  room,  and  the  father,  who  had  spent  his  work- 
ing Hfe  on  a  farm  .  .  .  had  not  as  yet  been  able  to  find  employment. 
The  owner  of  the  house  in  which  they  were  Uving  was  complaining 
bitterly  of  the  overcrowding  and  unsanitary  conditions.  The  Poor 
Commission  gave  emergency  relief,  provisions  and  fuel,  and  obtained 
employment  for  the  man. 

Two  weeks  later  the  man  was  again  out  of  work;  the  family  was 
destitute,  and  applied  to  the  Society  of  St.  Vincent  de  Paul.  This 
society  investigated  and  found  the  family  destitute  and  the  youngest 
child  ill  with  diphtheria.  The  child  was  sent  to  the  [hospital].  .  .  . 
Because  of  the  unsanitary  conditions  of  the  household,  the  fam- 
ily were  referred  to  the  Visiting  Housekeeper  Association  for 
instruction.  ... 

During  the  second  employment  period  of  the  man  it  seemed  possible 
that  the  family  might  become  chronically  dependent,  and  they  were 


DEPENDENCY:    ITS    RELIEF    AND    PREVENTION      327 

offered  transportation  back  to  their  legal  residence.    This  the  family 
refused. 

The  Conference  of  St.  Vincent  de  Paul  had  given  temporary  re-   Low  wages, 
lief  in  this  case  and  had  then  referred  the  family  to  its  Child  Caring 
Department  for  social  work.    The  social  worker  made  several  visits. 
In  March  the  man  was  working,  earning    about  $2.00  to  $2.50  a 
day.     In  April  the  house  was  condemned  by  the  Board  of  Health   Family 
and  the  family  moved  to  another  place.  .  .  .  moved. 

In  November,  1916,  the  family  again  applied  to  the  St.  Vincent 
de  Paul  Society  because  of  destitution.  .  .  . 

Case  Comment:   This  case  involves  an  economic  problem  of  low   Case  corn- 
wages,  complicated  by  illnesses  of  various  members  of  the  family.    ^^'^^  ^^'^ 
It  is  illustrative  of  the  extreme  difficulties  encountered   by  a  family 
of  this  type  locating  in  Detroit  without  resources.  .  .  .  More  generous 
standards  of  relief  would  have  lessened  the    family  difficulty. 

Diagnosis:  Economic  difficulties  of  native  worker  in   new  environ-   diagnosis. 
ment:    illness  of  children:    poor  housing:    inadequate  relief. 


141.   The  friendly  visitor  ^ 

Because  dependency  is  a  many-sided  phenomenon,  we  have  been  Friendly 

obliged  to  develop  various  types  of  social  work  to  attack  the  different   '^isitmg  an 

element  m 
phases  of  the  problem.  Prominent  in  the  field  of  social  work  are  organ-   organized 

ized  charity  societies,  known  by  various  names  in  different  cities,    chanty 

work. 
One  of  the  characteristic  elements  in  the  work  of  organized  charity 

is  friendly  visiting.     The  best  type  of  friendly  visitor  is  a  trained 

social  worker  who  personally  wins  the  confidence  and  loyalty  of  the 

dependent,  and  then,  by  constructive  aid  and  advice,  helps  to  induce 

a  normal  situation.     Some  concrete  examples  of  the  work  of  the 

friendly  visitor  may  here  be  cited  from  the  Twenty-first  Annual 

Report  of  the  Associated  Charities  of  Boston: 

Ten  years  ago  one  of  our  visitors  made  her  first  call  upon  the   a  family 

family  whose  story  is  here  given.    She  found  five  untidy  children,  the   ^^/"^^  "^^ 
,  ^  o  .^  fallen  on 

father  just  recovering  from  a  broken  leg,  and  the  ailing  mother  with    evil  days  is 
a  sickly,  small  baby,  regarded  as  the  bringer  of  the  family's  recent    ["""^l,^^  ^ 

'  From  the  Associated  Charities  of  Boston,  Twenty-first  Annual  Report.    Boston, 
November,  1900;  pp.  10-13. 


328 


READINGS   IN  AMERICAN  DEMOCRACY 


and  taught 
the  funda- 
mentals of 
a  proper 
diet,  and 
the  care  of 
money. 


A  drunkard 
is  turned 
into  an  in- 
dustrious 
and  respon- 
sible citizen. 


A  third 
case. 


bad  luck.  A  leaky  stove  hardly  warmed  their  two  badly  kept  rooms, 
and  was  of  no  use  at  all  for  baking.  So  the  family  lived  on  baker's 
bread,  bacon,  and  other  unsuitable  and  comparatively  expensive 
foods. 

The  gift  of  a  new  stove  procured  by  the  Conference  m_ade  a  pleasant 
opportunity  for  the  visitor  to  show  the  mother  how  to  cook  better 
and  cheaper  food;  she  also  taught  her  to  cut  and  fit  clothes  for  her 
family.  .  .  .  The  health  of  all  improved,  and  the  family  finances  as 
well.  The  visitor  showed  how  much  cheaper  it  was  to  save  money  and 
buy  a  carpet  for  cash  than  to  buy  on  the  instalment  plan,  as  the  mother 
had  wished;  and  this  experiment  led  to  the  purchase  of  all  the  house- 
hold goods  for  cash,  and  eventually  to  the  purchase  of  the  "house 
itself.  .  .  . 

A  case  where  a  Uttle  investigation  resulted  immediately  in  bene- 
fits to  the  family  is  that  of  a  woman  who  appUed  to  one  of  our  agents 
for  help  for  herself,  sick  husband,  and  two  children.  The  reHef  so- 
ciety which  had  helped  before  reported  that  the  man  was  a  hopeless 
drunkard  for  whom  it  was  useless  to  do  anything.  Our  agent  found 
that  the  man  had  been  a  carpenter  on  a  southern  ranch,  and  wrote 
to  his  employers  there.  They  needed  his  services,  and  sent  money 
for  his  ticket  back.  It  was  rheumatism  which  in  the  climate  of  Boston 
kept  him  from  working,  and  drove  him  to  drink.  Since  returning 
south  he  has  worked  steadily  on  the  ranch,  comfortably  supporting 
his  family,  who  remain  here. 

Three  years  ago  a  man  fell  from  a  staging  and  was  killed,  leaving 
a  wife  and  five  small  children.  The  visitor  appealed  to  the  man's 
former  employer,  who  furnished  fuel  for  the  family  for  some  time; 
the  two  youngest  children  were  taken  into  the  day  nursery;  a  former 
employer  of  the  mother  also  assisted  with  groceries;  relatives  were 
interested,  who  helped  to  the  extent  of  their  ability;  and  friends 
secured  quite  a  sum  by  means  of  a  benefit  ball.  This  money  the 
woman  is  using  in  fitting  up  and  stocking  a  Httle  store  near  a  park, 
which  promises  to  make  her  self-supporting.  .  .  . 

[Another  case  is  that  of  a]  couple  with  two  young  children.  ... 
The  man,  formerly  a  'longshoreman,  had  lung  trouble,  and  was  xmable 
to  do  hard  work.  The  visitor  secured  admission  for  the  oldest  child 
to  the  day  nursery,  and  found  the  woman  work,  which  she  soon  lost 


DEPENDENCY:    ITS    RELIEF    AND    PREVENTION      329 

through  inefficiency.    Again  the  visitor  secured  work  for  the  woman  Constructive 

and  hght  outdoor  work  for  the  man,  who  has  greatly  improved  in  ^    ^^' 

health.   The  next  step  was  to  induce  the  family  to  leave  their  wretched  family 

quarters  for  a  more  homehke  place,  and  this  was  accomplished.    Back  ,  ™'^'^/ 

debts  have  been  paid,  a  new  stove  is  gradually  being  paid  for,  and  they  upon  a  sick 

are  now  receiving  practically  no  help.  '"^'^' 

[Here  is  another  case:]    A  man,  unable  to  do  hard  work,  earned  A  family 
a  little;   wife  suffered  from  epilepsy  and  periods  of  insanity;   several       !\  '^'^^' 

of  the  five  children  delicate,  and  two  of  them  deformed.    Through  habilitated, 

the  efforts  of  the  friendly  visitor,   one  child  was  admitted  to  the  v*^  which 

Children's  Hospital,  Its  legs  were  straightened,  and  the  boy  sent  friendly 

home  with  its  limbs  in  a  plaster  cast.  .  .  .   The  child  is  now  at  home  '^'^^*°'^ 
again,  perfectly  well  and  sound.      In  the  mean  time  the  mother's 
sister  in  an  inland  city  was  consulted,  and  gave  the  baby  a  good  home 
with  herself  while  the  mother  was  in  the  hospital  for  the  insane. 

Whatever  the  future  may  show  as  to  the  wisdom  of  keeping  this  partially  re- 
family  together,  it  will  readily  be  seen  that  the  visitor's  efforts,  with  organizes, 
the  help  of  the  charities,  have  resulted  in  restoring  to  perfectly 
normal  and  healthy  condition  one  who  would  otherwise  have  been 
a  cripple  and  burden  on  society. 

142.   An  ideal  almshouse  ^ 

As  a  general  rule,  persons  who  are  only  slightly  or  temporarily    Two  types 
dependent,  and  who  do  not  need  specialized  care  or  treatment,  are   °   ^^^^  ■ 
best  treated  in  their  homes.     On  the  other  hand,  relief  should  gen- 
erally be  extended  through  institutions  where  the  dependent  is  per- 
manently or  totally  disabled,  or  where  he  is  in  need  of  special  care 
and  treatment.     The  oldest  and  least  speciaUzed  of  all   institutions 
for  the  adult  dependent  is  the  almshouse,  sometimes  called  the  poor- 
house.     In  the  following  selection  Francis  Bardwell,   formerly   In- 
spector of  Almshouses  in  Massachusetts,  tells  what   an   inmate  of   The  ahns- 
an  ideal  almshouse  has  a  right  to  expect:  °^^^' 

Those  of  us  whose  business  it  is  to  deal  with  the  affairs  and  manage-    Taking  the 
ment  of  institutions  usually  approach  the  subject  through  the  main   P°J^*  °l 
hallways;  I  feel  that  we  would  get  further  and  see  clearer  if  we  came   inmate. 

*  From  the  National  Conference   of  Social  Work,  Proceedings.      Forty-fourth 
Annual  Session.    Pittsburg,  June  6-13,  1917;  pp.  357-361. 


33<^ 


READINGS  IN  AMERICAN  DEMOCRACY 


Things 
which  the 
inmate  has 
a  right  to 
expect  of 
the  alms- 
house. 


An  ideal 

almshouse 

building. 


Food  and 


medical 
attendance. 


Kindly 
attendance. 


into  the  institution  at  the  inmates'  entrance  and  saw  things  from 
their  point  of  observation. 

[Suppose  that  I  am  a  pauper  and  that  the  authorities  see  fit  to 
care  for  me  through  the  medium  of  the  almshouse.]  When  I  have 
made  application  and  been  accepted,  I  have  a  right  to  expect  certain 
things  pertinent  to  my  comfort,  welfare,  and  care.  .  .  .  First,  I 
have  a  right  to  demand  the  common  necessities  —  shelter,  personal 
cleanliness,  food,  clothing,  and  medical  attendance;  second,  I  have 
a  right  to  ask  for  the  following  comforts  —  kindly  attendance,  quiet 
and  decent  quarters,  reasonable  freedom  from  objectionable  fellow 
inmates,  the  opportunity  of  receiving  visits  from  friends;  third, 
I  hope  to  receive  some  form  of  recreation,  the  pleasure  of  attending 
rehgious  services  at  least  monthly,  employment  suited  to  my  age 
and  physical  condition,  the  right  to  protest,  without  detriment 
to  myself,  against  any  hardship  I  may  feel  that  I  am  forced  to 
bear.  .  .  . 

First,  then,  I  demand  as  my  right,  shelter.  This  means  the  alms- 
house building.  .  .  .  Briefly,  we  need  a  building,  properly  heated, 
allowing  for  separation  of  sexes,  ample  fire  protection  and  fire  es- 
capes, well-equipped  kitchen  and  laundry,  well-arranged  sleeping 
quarters,  intelligently  planned  sanitary  conveniences,  an  assembly 
room,  or  dining  room  large  enough  to  use  for  an  assembly  room,  rest 
rooms  for  the  women  and  smoking  rooms  for  the  men,  adequate 
hospital  accommodations,  etc.  .  .  . 

Food.  —  What  shall  the  standard  be?  A  sufficient  amount  of  well- 
cooked,  nutritious  food,  varied  and  suited  to  the  condition  of  the 
consumers.  Invahds  and  the  sick  should  have  the  advantage  of  a 
dietary  provided  by  the  physician.  .  .  . 

As  an  almshouse  inmate  I  am  entitled  to  good  medical  attendance, 
and  I  look  to  the  administration  to  furnish  the  same  standard  as 
they  employ  in  their  own  famihes.  .  .  . 

Kindly  attendance.  —  Whatever  else  a  warden  may  possess  in  exec- 
utive abihty,  he  must  be  honest  and  kindly.  .  .  .  The  matron  must 
be  a  woman  who  has  lost  her  temper  for  all  time,  a  good  manager, 
and,  in  a  word,  a  mother  to  the  inmate  family.  .  .  .  The  adminis- 
tration must  be  conducted  for  the  proper  care  of  the  inmates.  The 
institution  exists  for  its  inmates,  not  for  one  type,  one  group,  but  as 


DEPENDENCY:    ITS    RELIEF    AND    PREVENTION      331 

is  best  for  all.     Proper  care  should  never  be  subordinate  to  mere 
economy.  .  .  . 

I,  as  an  inmate,  want  recreation,  work,  religious  services,  and  the  The  right 
right  to  report  abuses  and  not  suffer  for  so  reporting.    I  think,  it  should   ^?  '■^^'■^^" 
be  the  duty  of  the  superintendent,  with  the  strong  backing  of  the   giou's  serv- 
directors,  to  enlist  the  cooperation  of  various  church  societies  and   '"^'  ^^'^' 
fraternal  orders  so  that  entertainment  may  be  provided  for  the  alms- 
house people,  talks,  concerts,  simple  treats,  and  in  some  cases  mo\'ing 
pictures.    I  believe  that  every  almshouse  should  have  its  Christmas 
observance,  a  tree,  little  remembrances  and  gifts,  and  above  aU  the 
Christmas  spirit  that  to  many  poor  old  people  banishes  for  a  time  the 
feeling  of  complete  dependence.     Men  and  women  should  be  provided 
with  games,  papers,  magazines,   etc.     I  know  one  almshouse  that 
provides  a  car  ride  and  annual  picnic,  and  another  where  a  lady  of 
the  community  opens  her  home  for  a  whole  day  and  entertains  the 
old  ladies.     Such  events  provide  pleasant  anticipation  and  hours 
of  wonderful  memories,  and  are  a  good  investment  in  almshouse 
administration,    as   is   anything    that    brings    about    the   spirit   of 
contentment.  ... 

143.    State  control  of  institutions  for  dependents  ^ 

As  has  been  suggested,  charitable  relief  may  be  either  institutional   The  two- 

or  non-institutional.    To  confine  our  present  attention  to  institutional  devel- 

opment  in 

relief,  the  past  century  has  witnessed  a  twofold  development  in  this   institutional 

field.    In  the  first  place,  there  has  been  a  high  degree  of  specialization   ^^ 

to  meet  the  needs  of  various  types  of  dependents.     In  the  second 

place,  there  has  been  a  tendency  for  all  of  the  charitable  institutions 

of  the  state  to  be  placed  under  coordinated  management.     In  the 

following  selection  Professor  Henderson  discusses  some  aspects  of 

this  development: 

For  the  function  of  supervision  and  direction  of  the  state  insti-   In  the  con- 
tutions  through  an  administrative  body  it  has  been  found  desirable 
to  appoint  boards  of  competent  persons  charged  with  this  duty. 
The  tendency  to  specialization  in  older  and  more  populous  states  is 
shown  in  the  creation  of  separate  bodies  for  the  supervision  or  control 

*  From  Charles  Richmond  Henderson,  Introduition  to  the  Study  of  the  Dependent, 
Defective,  and  Delinquent  Classes.     D.  C.  Heath  &  Co.    1901;   pp.  206-208. 


trol  of  state 
institutions, 


332 


READINGS  IN  AMERICAN  DEMOCRACY 


division 
of  labor  is 
necessary. 


The  proper 
field  of  a 
state  board 
of  charities. 


Status  of 
its  recom- 
mendations. 


of  institutions  of  charity,  lunacy,  prisons,  health,  and  education. 
It  is  impossible  to  govern  such  varied  interests  by  general  statutes, 
and  the  legislature  is  incompetent  to  frame  practical  rules  of  govern- 
ment. Administrative  agents  may  be  selected  by  the  executive  head 
of  a  commonwealth  who  are  able  to  give  particular  attention  to  the 
various  needs  of  the  several  classes  of  public  wards. 

Pauperism  and  crime  should  be  separated  from  each  other  in 
thought  and  practice,  and  both  from  insanity,  health,  and  education. 
The  problems  are  too  vast  and  complex  to  intrust  to  a  single  board. 
There  must  be  division  of  labor.  It  is  impossible  to  find  in  any  one 
man  all  the  necessary  qualifications  for  success  in  several  different  de- 
partments. A  commission  which  has  long  devoted  itself  to  the  con- 
sideration of  the  wants  of  the  insane  is  rarely  composed  of  persons 
most  suitable  to  serve  as  overseers  of  prisoners.  A  board  of  health 
requires  expert  medical  knowledge,  while  the  leaders  of  public  schools 
must  be  trained  in  the  science  and  art  of  education. 

There  are  two  types  of  state  boards  of  charities,  distinguished  by 
their  functions  and  powers,  one  charged  with  supervision,  and  others 
with  control.  The  objections  to  having  a  single  board  of  control 
for  all  the  institutions  of  a  state  have  already  been  considered. 

The  proper  field  of  a  state  board  of  charities  is  the  supervision 
of  aU  establishments  of  the  commonwealth,  and  of  voluntary  asso- 
ciations which  are  philanthropic  in  character.  It  has  power  to  re- 
quire accounts  to  be  kept  on  a  uniform  and  prescribed  plan,  so  that 
results  may  be  compared.  All  officials  are  under  legal  obligation  to 
afford  all  necessary  facilities  for  the  study  of  conditions,  working, 
and  discipline.  The  board  represents  the  interests  of  the  entire 
people  of  the  state,  whose  sacrifices  furnish  support  and  whose 
fortunes  are  affected  by  the  use  or  abuse  of  corporate  powers.  Such 
a  board,  having  no  direct  and  administrative  responsibiUties,  is 
independent  of  each  particular  institution,  and  is  in  a  position  to 
weigh  and  compare  the  claims  of  all  with  just  and  fair  judgment. 

Their  recommendations  to  the  legislature  have  an  authority  and 
presumption  of  impartiality  which  cannot  be  expected  of  the  local 
boards.  The  pubHc  is  justified  in  a  certain  reserve  in  accepting  the 
statements,  the  claims,  and  the  requests  of  a  controUing  body  which 
may  be  expected  to  favor  its  own  policy  and  conduct. 


DEPENDENCY:    ITS    RELIEF    AND    PREVENTION      333 

A  supervisory  state  board  of  charities  may  have  certain  quasi-   Quasi-ad- 
administrative  duties  assigned  it  without  impairing  its  general  char-   ™"^*^'^'^^^° 
acter.     Thus  it  may  be  empowered  to  examine  and  pass  upon  all   the  board, 
plans  for  county,  city,  and  state  buildings,  as  asylums,  poorhouses, 
jails,  and  the  law  may  require  their  approval  before  contracts  may 
be  let.    They  may  also  be  required  to  remove  paupers  from  the  state 
or  from  one  institution  to  another  within  the  state,  when  such  changes 
promise  to  promote  justice  and  efficiency  of  treatment. 

The  pohtical  principle  of  administration  at  the  basis  of  all  state  The  princi- 

boards  is  very  wide  and  vital.      The  people  of  the  entire  common-   Pf  •?  .^t^*^^ 

admimstra- 

wealth  have  an  interest,  financial  and  moral,  even  in  institutions  with  tion 
local  support  and  control,  as  schools,  .  .  .  poHce  of  cities,  taxation, 
municipal  finances,  and  industries  and  charities.  The  principle 
may  be  formulated  thus:  when  the  interest  of  the  entire  people  of 
the  commonwealth  is  involved  in  local  administration,  the  best  regula- 
tive agency  is  a  supervisory  board  or  a  commission,  appointed  by 
the  executive  branch,  and  acting  continuously  to  safeguard  the 
interest  of  the  commonwealth. 

The  reasons  for  adopting  this  principle  are:   That  a  central  board   and  the 
or  commission,  so  appointed,  is  more  apt  to  be  composed  of  able  and   '^^^s°'^s  '°'' 
competent  men.     They  act  before  the  pubHc  view  and  are  held  to 
a  higher  standard  of  responsibility  and  efficiency.    They  have  a  wider 
field  of  observation  and   comparison  of   conditions  and  methods. 
They  can  command  the  most  efficient  means  of  securing  information. 

The  special  and  occasional  examinations  by  temporary  committees 
of  legislatures  are  utterly  inadequate,  because  they  have  not  the 
previous  and  continuous  training  which  secures  expert  judgment. 


144.   The  movement  for  financial  federation^ 

We  have  noticed  that  in  institutional  relief  specialization  has  been  Movement 

accompanied  or  followed  by  coordination.     Non-institutional  rehef  to  coordi- 

•^  _  nate  soaal 

has  experienced  this  same  twofold  development.     The  coordination  agencies  of 

of  non-institutional  rehef  agencies  may  take  one  of  several  forms.  ^  non-insti- 

Some  students  beheve  that  while  it  is  desirable  for  the  functions  nature. 

'  From  the  American  Association  for  Organizing  Charity,  Financial  Federations. 
New  York,  1917;  pp.  63-67. 


334 


READINGS  IN  AMERICAN  DEMOCRACY 


Degree  of 

financial 

success. 


Educational 
aspect  of 
financial 
federation. 


Question  of 
gains  from 
the  social 
side. 


Progress  in 
cities  where 
federation 
does  not 
exist. 


of  such  agencies  to  be  coordinated,  the  organizations  should  remain 
separate  and  distinct  as  regards  finances  and  internal  management. 
More  recently,  however,  others  have  advocated  the  federation  of 
social  agencies  financially  as  weU  as  functionally.  A  financial  federa- 
tion may  include  all  community-\\ide,  non-sectarian  associations 
or  social  agencies  which  desire  to  raise  their  funds  jointly  or  by  com- 
mon action.  In  191 7  the  American  Association  for  Organizing  Charity 
formulated  the  following  conclusions  and  recommendations  with 
respect  to  financial  federations: 

Our  general  conclusions  are  as  follows: 

1.  Measured  by  total  contributions,  financial  success  appears  to 
have  been  usual  in  initial  federation  years  except  where  there  has 
been  inadequate  preparation  and  organization.  ...  In  most  federa- 
tions the  cost  of  collection  has  probably  been  reduced  below  what 
it  might  have  been  under  average  unfederated  conditions,  but  the 
gain  has  not  been  a  marked  one. 

2.  On  the  educational  side  there  has  been  an  undoubted  gain  in 
certain  cities,  due  to  their  federations'  publicity  efforts,  and  some 
gain  in  aU  cities  to  the  extent  that  joint  appealing  makes  the  breadth 
and  variety  of  social  work  better  realized.  But  even  in  the  federation 
cities  that  have  done  the  best  educational  work  we  recognize  a 
tendency,  which  seems  to  us  inexdtable,  toward  a  loss  of  interest 
resulting  from  the  lessened  contact  between  givers  and  the  objects 
of  their  gifts,  and  we  very  much  doubt  whether  this  has  not  more 
than  offset  aU  that  has  been  gained  by  organized  publicity  and  by 
the  one  educational  element  in  joint  appealing  just  referred  to.  .  .  . 

3.  On  the  social  side  the  gains  of  the  federations  that  have  at- 
tempted social  work  have  been  considerable,  and  usually  so  far  they 
seem  not  to  have  been  offset  by  losses,  other  than  [the  loss  previously 
noted.]  The  fact,  however,  that  so  many  federations  have  neglected 
social  work  indicates  a  tendency  which  grows  out  of  the  imperative 
character  of  the  financial  problem  which  it  is  a  federation's  first 
duty  to  solve.  .  .  . 

[However,]  in  many  cities  in  which  no  federations  exist  progress 
has  been  steady  and  important,  both  in  educational  lines  and  in  organ- 
ized cooperative  social  work  —  quite  as  important,  even  though 
possibly  not  as  rapid,  as  that  which  has  taken  place  in  certain  of 


DEPENDENCY:    ITS    RELIEF    AND    PREVENTION      335 

the  federation  cities.  .  .  .  [Due  to  the  insufficiency  of  the  data,  we 
must  conclude  that]  whether  the  federation  plan  in  any  city  means 
a  net  social  advance  or  the  reverse  is  yet  to  be  demonstrated.  No  A  warning, 
demonstration,  moreover,  can  be  made  in  the  next  two  or  three  years. 
The  more  far-reaching  effects  can  hardly  show  themselves  in  that 
time.  It  must  be  recalled  also  that  the  forming  of  a  federation 
means  an  immense  amount  of  work,  which  is  wasted  unless  the  fed- 
eration accompHshes  more  than  the  constituent  associations  could 
do.  Unless  this  result  is  very  probable,  federation  should  not  be  under- 
taken. .  .  . 

We  recognize  that  many  of  the  federation  difficulties  .  .  .  are  due   Mistakes  of 
to  mistakes  of  management.    The  secretary  of  one  of  the  large  fed-   "^^"^^8^" 
erations  states  that  "no  important  movement  has  suffered  more  from 
hasty  organization,  inadequate  preparation,  and  amateurish  leader- 
ship than  the  federation  movement." 

It  should  be  remembered  that  to  a  considerable  extent  when  an   Federation 
organization  enters  a  federation  it  burns  its  bridges  behind  it.    The   ?  ^"  ^^, 
secretary  of  one  of  the  large  federations  writes:    "Obviously,  after   step, 
a  few  years  of  giving  which  is  almost  altogether  undesignated  giving 
it  will  be  very  difficult  to  restore  designations  or  even  to  restore  the 
old  unfederated  order."  .  .  . 

A  few  months  ago  Mr.  Williams  stated  that  "the  biggest  obstacle   The  great- 
to  the  success  of  the  federation  plan  is  that  its  logic  is  too  good  —   ^^  federa- 
it  looks  too  easy."     This  is  very  true.     It  partly  explains  the  great    tion. 
mortality  among  federations.     Five  out  of  twenty  have  been  aban- 
doned and  one  other  has  suspended  operations.     The  abolition  of 
competition  in  the  financing  of  social  organizations,  for  the  sake  of 
avoiding  its  waste,  L  as  attractive  a  proposition  in  theory  and  appar- 
ently as  logical  as  the  abolition  of  competition  in  business.  .  .  .  But 
in  the  social  field  .  .  .  there  are  spiritual  and  psychological  factors   Conclusion, 
which  leave  doubts  as  to  the  ultimate  advantage  to  be  derived  from 
giving  up  a  plan  of  work  which  has  behind  it  the  experience  of  more 
than  one  generation  of  social  workers,  in  order  to  adopt  one  which, 
according  to  many  who  are  in  a  position  to  know,  is  still  in  its  experi- 
mental stage. 


S3(>  READINGS   IN  AMERICAN  DEMOCRACY 

Questions  on  the  foregoing  Readings 

1.  What  is  the  relation  of  dependency  to  urban  life? 

2.  What  is  the   most  obvious  effect  of  the   mobility  of  the  urban 

population? 

3.  What  are  the  social  causes  of  intercommunity  migration? 

4.  What  is  a  chief  cause  of  the  migratory  tendency  among  wage- 

earners? 

5.  How  may  the  causes  of  dependency  be  classified? 

6.  Why  is  it  necessary  to  analyze  cases  of  dependency  in  a  careful 

and  detailed  way? 

7.  Outline  the  history  of  the  family  which  became  dependent  because 

of  removal  from  New  York  to  Detroit  under  unfavorable  circum- 
stances. 

8.  Explain  the  case  of  the  family  which  became  dependent  because 

of  removal  to  an  environment  in  which  the  chief  wage-earner 
was  not  qualified  to  support  the  family. 

9.  What  is  the  relation  of  friendly  visiting  to  organized  charity  work? 

10.  Give  an  example  of  how   a  friendly  visitor    instructed  a  family 

in  the  fundamentals  of  a  proper  diet  and  the  care  of  money. 

11.  Give  some  further  examples  of  the  constructive  work  of  the  friendly 

visitor  representing  the  Associated  Charities  of  Boston. 

12.  What  are  two  general  types  of  charitable  relief? 

13.  What  three  classes  of  things  does  Mr.  Bardwell  believe  an  inmate 

has  a  right  to  e.xpect  of  the  almshouse? 

14.  Describe  an  ideal  almshouse  building. 

15.  What  has  the  inmate  of  the  almshouse  a  right  to  expect  in  the 

way  of  food  and  medical  attendance? 

16.  What  ought  the  inmate  to  receive  in  the  way  of  recreation? 

17.  What  twofold  development  has  taken  place  in  the  field  of  insti- 

tutional relief? 

18.  Why  is  division  of  labor  necessary  in  the  control  of  state  insti- 

tutions? 

19.  What  is  the  proper  field  of  a  state  board  of  charities?  ' 

20.  What  is  the  political  principle  of  administration  at  the  basis  of 

all  state  boards? 

21.  What  are  the  reasons  for  adopting  this  principle? 

22.  What  is  a  financial  federation? 

23.  What  can  be  said  as  to  the  educational  and  social  gains  from 

financial  federation? 

24.  What  is  the  greatest  obstacle  to  the  success  of  the  financial  fed- 

eration? 

25.  What  is  the  conclusion  of  the  American  Association  for  Organizing 

Charity  with  respect  to  the  future  of  the  financial  federation? 


CHAPTER   XXV 

RURAL   LIFE 

145.   Why  young  people  leave  the  farm  ^ 

A  fundamental  factor  in  the  problem  of  rural  life  is  the  tendency   Some  causes 

of  country  people,  and  particularly  of  young  country  people,  to  re-   °^  the  city- 

....  1    1  T  ward  drift, 

move  to  towns  and  cities.  The  causes  for  this  cityward  drift  are  com- 
plex, but  in  general  they  are  grouped  around  the  belief  that  the  city 
offers  more  advantages  and  fewer  dis  advantages  than  does  the 
country.  Particularly  where  young  people  are  concerned  it  is  neces- 
sary to  notice  the  influence  of  suggestion  upon  the  cityward  drift. 
This  important  influence,  often  overlooked,  is  described  by  Professor 
Groves  in  the  following  passage: 

The  movement  of  population  toward  urban  centers  .  .  .  deserves  Suggestion 
study  in  the  Hght  of  the  modern  teaching  of  psychology.  .  .  .  Sug-  ^"^^  ^^  "■"" 
gestions  influence  the  child  profoundly,  and,  of  course,  not  less  in 
the  country  than  in  the  city.  In  many  cases  the  life  of  the  rural 
child  is  penetrated  more  deeply  by  significant  suggestions,  because 
his  life,  since  it  is  spent  in  a  less  complex  environment,  offers  a  smaller 
quantity  of  suggestions,  or  a  greater  uniformity  of  such  influence. 
In  any  case,  the  suggestions  that  enter  the  mind  of  the  rural  child 
provide  a  basis  for  explaining  later  actions.  .  .  . 

Every  occupation    provides    reasons    for    discontent,  but  in  the   Significance 

country  any  dissatisfaction  with  the  conditions  of  .  .  .  farming  is   °^  discon- 
•'        ■'  _  tent  with 

likely  to  develop  into  discontent  regarding  the  country  itself,  for  the   farming, 
occupation  and  the  environment  are  hardly  to  be  distinguished.    In- 
deed, in  leaving  the  occupation  of  farming,  it  is  usually  necessary 
for  such  people  also  to  leave  the  country  towns.  .  .  .  Suggestions, 
therefore,  that  farming  does  not  pay,  or  is  too  laborious  and  unprofit- 

1  From  Ernest  R.  Groves,  Using  the  Resources  of  the  Country  Church.    Association 
Press,  New  York,  igi;;  pp.  7-9,  14-15,  19-21. 

337 


33^ 


READINGS  IN  AMERICAN  DEMOCRACY 


The  efifect 
of  prolonged 
toil. 


The  effect 
of  deferred 
or  restricted 
recreation. 


The  role  of 
advertising. 


The  lure  of 

success  in 
the  city. 


able,  translated  into  effective  action,  bring  about  a  removal  from 
both  industry  and  locality. 

The  early  experiences  on  the  farm  may  leave  a  suggestion  of  un- 
reasonable toil.  Romantic  youth  cannot  rest  content  \vith  a  vision 
of  endkss,  lengthened  hours  of  work  and  merely  a  living.  .  .  .  Par- 
ents have  at  times  been  responsible  for  this  conception  of  farming, 
because  they  have  insisted  upon  having  their  sons  and  daughters 
work  unreasonably  during  vacation  and  after  school.  The  parent 
who  looks  backward  upon  a  generation  more  given  to  long  toil  than 
this,  may  the  more  easily  commit  this  mistake  and  teach  his  children 
to  hate  the  farm  and  rural  Ufe. 

The  adult  of  little  imagination  is  Ukely  to  forget  another  source 
of  experiences  in  youth  that  may  suggest  to  the  country  boy  attitudes 
that  later  provide  a  basis  for  discontent  in  regard  to  rural  Ufe.  The 
boy  on  the  farm  finds  at  times  that  his  holiday  and  vacation  are  en- 
croached upon  by  needed  labor.  Weather  and  harvest  conditions  rob 
him  of  the  pleasures  that  his  village  chum  enjoys.  Some  definite  plan 
for  an  outing  or  some  greatly  desired  day  of  sport  has  to  be  given  up 
that  the  crop  may  not  be  injured.  Doubtless  parents  allow  these 
disappointments  to  happen  with  little  reason,  and  looking  at  the 
matter  from  an  adult  point  of  view,  do  not  regard  the  boys'  feelings 
as  of  serious  significance;  and  yet,  in  the  light  of  modem  psychology, 
we  know  that  such  experiences  may  build  up  a  very  significant  hos- 
tifity  to  the  rural  environment.  .  .  . 

Modem  advertising  is  itself  a  supreme  illustration  of  effective 
suggestion,  and  its  development  has  been  for  the  most  part  in  the 
hands  of  urban  interests.  Such  advertising  has  forced  rural  people 
to  contrast  their  manner  of  life  ■with  urban  conditions,  and  often 
with  the  result  of  discontent.  They  are  drawm  to  the  city  on  special 
occasions  by  alluring  city  publicity  manipulated  with  scientific 
skill  by  experts,  and  often  return  to  their  country  homes  dissatisfied 
because  of  false  notions  regarding  the  pleasures  of  the  city.  Of 
course  this  is  more  largely  true  of  young  people  and  they  are  more 
open  to  suggestion.  .  .  , 

Spectacular  success  is  largely  dependent  upon  urban  conditions  of 
life,  and  such  success  obtains  pubHc  attention.  Even  in  the  country, 
the  successes  talked  about  are  hkely  to  be  those  made  possible  by 


RURAL  LIFE  339 

city  life.  These  are  given  space  in  the  magaziaes  and  daily  papers 
edited  and  published  in  the  cities,  and  so  they  naturally  occupy  the 
minds  of  rural  readers  of  such  periodicals.  The  young  man  who 
feels  the  attraction  of  such  enterprise  .  .  .  receives  a  suggestion  that 
invites  him  cityward.  When  a  community  is  itself  represented  by 
some  former  resident  in  some  spectacular  success,  it  is  certain  that 
many  young  men  mil  question  their  future  on  the  farm  in  that  locality. 
Thus  .  .  .  the  career  of  a  man  of  fame  may  continue  to  act  as  a  tradi- 
tion long  after  his  death  and  still  add  to  the  rural  migration.  .  .  . 


146.   Buying  farms  with  land-bank  loans  ^ 

In  brief,  a  solution  of  the  rural  problem  requires  that  the  country   Making  the 
be  made  so  attractive  that  people  suited  to  rural  hfe  %vill  be  drawn  ^frm  attrac- 

tivc 
toward,  rather  than  repelled  by  it.     One  way  of  making  rural  life 

attractive  is  to  render  farming  more  profitable,  and  one  way  of  ren- 
dering farming  more  profitable  is  to  extend  the  farmer  adequate 
credit  facilities.     In  1916  Congress  passed  the  Federal  Farm  Loan 
Act,  the  aim  of  which  was  the  improvement  of  the  financial  as-   The  Federal 
pect  of  the  farmers'  life.    In  192 1   the  United  States  Department   ^^[°^£^°^° 
of  Agriculture  issued  a  report  which  was  based  on  the  experience  of    1916. 
2,700  farmers  who  had  borrowed  money  through  the  Federal  Farm 
Loan  Banks.    The  foUowang  is  an  extract  from  this  report: 

An  analysis  of  78  per  cent  of  the  total  number  of  loans  from  the   Only  a 
time  of  the  organization  of  the  Federal  land  banks  to  November  30,    ^^^    ^^'', 
191 9,  indicates  that  only  13  per  cent  of  the  amount  thus  loaned   amounts 
was  for  the  purpose  of  purchasing  farm  land.    It  is  probable,  however,    f    'I't  ^^^^ 
that  even  this  small  percentage  represents  an  increase  in  the  propor-   pose  of 
tion  of  loans  for  this  purpose.    An  analysis  of  about  one-third  of  the   j^^y^^s  farm 
loans  made  prior  to  November  30,  1918,  indicates  that  only  8  per 
cent  of  the  proceeds  were  used  for  buying  farm  land.    If  the  propor- 
tion of  loans  is  representative,  within  a  year  the  proportion  of  the 
total  number  of  outstanding  loans  made  for  buying  farm  land  in- 
creased  from  8  to  13  per  cent.     As  this  year  was  a  period  of  rapid 
growth  in  the  volume  of  business,  the  total  amount  of  loans  being 

'  From  the  United  States  Department  of  Agriculture,  Bulletin  No.  968.    "Buy- 
jing  Farms  with  Land-bank  Loans."    Washington,  July  29,  1921;  pp.  4-6,  8,  lo-ii. 


340 


READINGS  IN  AMERICAN  DEMOCRACY 


The  landless 
farmer  has 
received  rel- 
atively 
little  aid 
from  the 
system. 


The  hope 
for  the 
future. 


A  conclu- 
sion. 


nearly  doubled,  this  increase  appears  to  indicate  a  tendency  toward 
the  more  extensive  employment  of  the  system  as  an  aid  in  buying 
farm  land.  .  .  . 

By  no  means  all  of  the  loans  made  for  buying  farm  land  represent 
the  borrowings  of  landless  persons.  .  .  .  [Of  a  group  of  2,054  bor- 
rowers who  were  studied  J  almost  exactly  two-thirds  of  these  borrow- 
ers owned  land  other  than  that  which  they  were  buying  by  the  aid 
of  the  Federal  farm-loan  system,  and  only  one-third  belonged  to  the 
landless  class.  When  one  bears  in  mind  that  probably  not  more  than 
15  per  cent  of  the  loans  made  by  the  Federal  land  banks  have  been 
for  the  purpose  of  buying  farm  land;  that  only  one-third  of  these 
borrowers  were  landless  .  .  .  ;  and,  finally,  that  the  total  loans 
of  the  Federal  land  banks  probably  represent  only  about  8  per  cent 
of  the  entire  farm-mortgage  indebtedness  of  the  United  States,  it 
will  be  clear  that  the  direct  aid  afforded  by  the  system  to  the  landless 
farmer  in  the  acquisition  of  land  has  been  relatively  small. 

It  should  be  noted,  however,  that  it  is  a  much  larger  proportion 
of  the  total  new  business.  Moreover,  not  all  landless  farmers  are 
persons  who  require  unusually  favorable  credit  facilities  to  aid  them 
in  buying  farm  land,  for  some  landless  farmers  have  wealth  which 
may  be  used  in  buying  land,  and  some  landless  persons  who  desire 
to  buy  farms  are  not  farmers  at  all. 

It  is  probable  that  the  relative  use  made  by  landless  farmers  will 
increase  as  the  possibilities  of  the  Federal  farm-loan  system  for 
financing  the  purchase  of  farms  becomes  better  known  among  this 
class.  The  small  proportion  of  the  loans  made  to  total  mortgage 
indebtedness  is  largely  owing  to  the  newmess  of  the  system,  and 
the  rapid  progress  made  in  the  past  few  years  would  seem  to  guar- 
antee that  its  relative  importance  as  a  source  of  farm  loans  will  be 
greatly  increased  in  the  future.  .  .  . 

It  appears  that  the  Federal  farm-loan  system  has  demonstrated 
its  possibiHty  as  an  aid  to  the  landless  farmer  in  acquiring  land.  Fur- 
ther analysis  of  its  use  by  borrowers  indicates  that  it  provides  con- 
ditions considerably  more  convenient  for  the  buyer  who  must  finance 
a  large  part  of  the  purchase  price  on  credit  than  are  afforded  by  the 
great  majority  of  private  agencies  engaged  in  farm-mortgage  business. 
This,  however,  does  not  imply  that  the  system  could  not  be  further 


RURAL  LIFE  34 1 

modified  so  that  it  could  be  more  readily  employed  in  financing 

the  purchase  of  farms  by  landless  men  of  small  capital.  .  .  . 

Objection  is  sometimes  raised  to  the  use  of  Federal  farm  loans  on   Some  hints 

the  ground  of  their  initial  cost.    [Possibly  the  system  could  be  im-   to  mdivid- 

proved  in  this  regard,  but  it  is  also  true  that  the  inconvenience  to   intend  to 

the  borrower  could  be  decreased  if  the  latter  were  to  observe  certain   'V^'^r  "^'^ 

the  farm 
rules.     For  example,]  the  prospective  purchaser  of  land  who  plans   loan  bank 

to  buy  with  money,  part  of  which  he  borrows  from  a  Federal  land  ^y^^em. 
bank,  should  give  due  consideration  to  the  possibihty  of  delay  in 
the  completion  of  negotiations  for  a  loan.  Cases  have  occurred 
in  which  prospective  buyers  have  made  deposits  on  land  to  secure 
a  contract  of  sale,  which  contract  they  have  forfeited  because  they 
were  unable  to  complete  the  purchase,  money  which  they  depended 
upon  Federal  land  banks  to  furnish  being  held  up  for  one  reason  or 
another.  Frequently,  delay  is  due  to  failure  to  comply  with  the 
requirements  of  the  Federal  land  banks  regarding  the  title  to  prop- 
erty; but  the  possibility  of  delay  for  other  reasons,  such  as  the  im- 
practicability of  the  appraiser  for  the  land  bank  promptly  viemng 
the  land,  should  be  foreseen,  and  the  contract  of  sale  should  be  made 
to  cover  a  sufiicient  time.  • 


147.   The  maxketing  of  the  farmer's  produce^ 

Of  the  economic  problems  which  confront  the  farmer,  none  has   Social  sig- 
a  wider  social  significance  than  the  effective  marketing  of  his  prod-   "^  ^^'^'^^  ^]^ 
uce.    It  is  commonly  stated  that  "the  farmer  gets  too  little  for  his   marketing 
produce,  while  the  ultimate  consumer  pays  too  much  for  it."  Properly   P''°°l*^™- 
understood,  this  statement  is  true,  and  it  is  admitted  on  aU  sides  that 
there  is  urgent  need  of  a  marketing  system  which  will  give  the  farmer 
more  for  his  produce,  and  at  the  same  time  allow  the  consumer  to 
secure  such  produce  at  a  smaller  cost  and  with  less  inconvenience 
than  at  present.     In  the  following  selection  Mr.  James  E.  Boyle 
discusses  marketing  from  the  farmer's  point  of  view: 

I.   Production.  —  [Recent  market  reports  indicate  a  glut  in  the 
market  of  low-grade  agricultural  products,  and  a  scarcity  of  high- 

^  From  the  American  Economic  Review.    Vol.  xi,  No.  2.    June,  1921.    (James  E. 
Boyle,  "Marketing  of  Agricultural  Products");  pp.  209-213. 


342 


READINGS   IN  AMERICAN  DEMOCRACY 


The  first 
3tep 

in  market- 
ing is  pro- 
ducing a 
better  prod- 
uct 


and  putting 
on  the  mar- 
ket a 
graded, 
standardized 
product. 


In  many 

cases 
farmers 
should  take 
hold  of  the 
storage 
question. 


Transporta- 
tion and 
marketing 
reforpi. 


grade  agricultural  products.]  The  first  problem  for  the  farmer, 
therefore,  is  not  how  to  increase  the  crop  yields,  but  how  to  produce 
more  of  the  better  grades,  less  of  the  poor  grades.  .  .  .  The  farmer 
ought  to  Umit  the  output  in  the  sense  that  he  keep  the  poorer  stuff 
at  home  and  put  the  better  stuff  on  the  market.  .  .  .  For  by  glutting 
the  market  with  poor-grade  stuff  the  farmer  spoils  his  own  market 
and  does  not  benefit  the  consumer.  .  .  . 

Grading  is  the  second  step  in  production.  .  .  .  ]\Iost  farm  com- 
modities have  no  Federal  grades  or  state  grades  or  any  other  kind 
of  grades.  Here  Ues  the  first  field  for  cooperative  marketing  by  farm- 
ers, that  they  may  put  on  the  market  a  better  product,  graded  and 
standardized.  ...  In  other  words,  they  [must]  imitate  manufac- 
turers of  successful  articles  —  have  a  brand  to  guarantee  its  integrity. 
When  a  good  article,  graded  and  standardized,  is  ready  for  market, 
the  marketing  problem  is  half  solved.  In  no  other  way  can  sales 
f.o.b.  be  made.  .  .  . 

2.  Storage.  —  Since  most  farm  crops  are  produced  only  in  the  sum- 
mer but  are  consumed  during  a  large  part  of  the  year,  these  crops 
must  be  stored  somewhere  by  somebody.  [At  present,  most  storage 
is  taken  care  of  by  middlemen,  who,  of  course,  charge  for  this  service. 
However,  constructive  marketing  demands  that  the  farmer]  take  hold 
of  the  storage  question.  In  some  sections  this  means  construction 
at  railway  stations  of  local  storage  warehouses  for  potatoes,  for  hay, 
and  for  various  other  crops.  .  .  .  With  many  commodities  farmers 
ought  to  go  into  the  terminal  market  and  own  storage  —  enough 
storage  at  least  to  leam  the  storage  business  from  the  inside.  .  .  . 
Summarizing,  farmers  should  consider  storage  as  part  of  their  market- 
ing program,  and  in  case  they  are  not  adequately  served  they  should 
devise  ways  and  means  of  owning  and  operating  more  of  their  own 
storage. 

3.  Transportation.  —  Most  farm  crops  are  produced  many  miles 
from  the  place  where  they  are  consumed.  .  .  .  Transportation  is 
the  most  expensive  Hnk  in  the  marketing  chain,  from  the  time  the 
product  leaves  the  farm  till  it  reaches  the  retailer's  hands.  [The  great 
defect  in  our  transportation  system  is  bad  country  roads.  This  defect 
must  be  remedied]  by  cooperation  in  the  widest  sense  of  the  term  — 
cooperation  of  all  the  various  interests,  rural,  urban,  local,  state,  and 


RURAL  LIFE  343 

national,  until  good  roads  are  secured  for  the  average  farmer.  The 
question  of  developing  rural  motor  express  lines  is  one  for  the  farmer 
to  face  and  solve.  Transportation  by  rail  is  so  vital  in  its  social  sig- 
nificance as  to  be  compared  with  the  arteries  in  the  human  body.  .  ,  . 

4.  Credit.  —  Most  farm  crops  are  paid  for  in  cash  when  taken  by  The  farmer 

the  dealer.    But  in  most  cases  it  is  a  matter  of  weeks  or  even  months  "]^^^^  profit- 
ably 
before  these  goods  are  passed  on  to  the  final  consumer  and  paid  for  make  a 

bv  him.     [The  middleman  steps  between  producer  and  consumer  ^'■^^ser  use 

.  of  credit  in 

and  furnishes  the  credit  needed  at  this  pomt.     But  the  farmer  might   marketing. 

be  educated  to  perform  this  credit  function.]    He  should  be  taught 

that  somebody  has  to  furnish  credit  to  market  his  crops  and  must  be 

paid  for  furnishing  this  credit;    that  wholesale  credit  is  cheaper  than 

retail  credit;   that  modem  banking  machinery  exists  to  furnish  more 

and  cheaper  credit  to  the  farmers  .  .  .  who  have  successfully  taken 

the  first  two  steps  in  marketing.  ... 

5.  Merchandising.  —  [Lastly,   the   farmer  will  get   more  for  his   Importance 
goods  if  his  position  as  a  seller  is  strengthened.]    Here  is  where  the   °.^  coopera- 
argument    comes   in   for    cooperative    selling   organizations   among   organiza- 
farmers.    They  are  mobiHzed;   they  have  power;    they  have  a  voice   ^^°^^- 

in  marketing.  .  .  .  Being  mobilized,  .  .  .  they  are  powerful  bar- 
gainers, within  the  Hmits  of  the  law  of  supply  and  demand.  .  .  . 

148.   The  viewpoint  of  the  farm  woman  ^ 

In  recent  years  we  have  heard  much  of  the  farmer's  burdens,  and   The  posi- 
of  the  necessity  of  Hghtening  them.     At  least  equally  heavy,  and   ^J^°f°^ 
certainly  less  in  the  public  mind,  are  the  burdens  which  have  rested  woman,  and 
upon  the  farm  woman.  The  position  of  the  farm  woman  is  improving,    ^"^  neces- 
but  the  relative  undesirabihty  of  her  position  is  indicated  by  the  fact   proving  it. 
that  more  young  women  than  young  men  are  leaving  the  rural  dis- 
tricts for  the  cities.    In  1920  the  United  States  Department  of  Agri- 
culture issued  a  report  on  the  desirability  of  so  arranging  the  work 
of  the  farm  woman  that  she  may  secure  for  herself,  her  family,  and 
the  community  the  highest  possible  degree  of  health,  happiness,  and 
efficiency.    The  following  extracts  from  this  report  indicate  some  of 
the  points  of  view  of  farm  women  throughout  the  country: 

^  From  the  United  States  Department  of  Agriculture,  Department  Circular  148. 
"The  Farm  Woman's  Problems."    Washington,  November,  1920;  pp.  14-16. 


344 


READINGS   IN  AMERICAN   DEMOCRACY 


The  de- 
mand for 
normal  liv- 
ing and 
working 
conditions. 


Need  of 
machinery. 


Unwilling- 
ness to  de- 
fer enjoy- 
ment. 


The  need 
for  leisure 
time. 


The  craving 
for  tune  to 
give  to  the 
care  of  the 
children. 


Briefly  stated,  here  are  some  of  the  points  of  view  expressed: 

Farm  women  love  the  country  and  do  not  want  to  give  up  its  free- 
dom for  city  life.  What  they  do  want  is  normal  Uving  and  working 
conditions  in  the  farm  home.  "The  country  offers  greater  oppor- 
tunity for  satisfying  Hfe  than  the  city,  and  country  women  have 
as  great  capacity  as  city  women  for  the  enjoyment  of  Ufe,  but  are 
more  handicapped  with  routine  which  absorbs  their  time  and 
strength." 

Because  of  the  shortage  of  help  prevalent  throughout  the  country, 
women  consider  it  especially  important  that  modern  equipment  and 
machinery,  so  far  as  possible,  do  the  work  which  would  otherwise 
faU  to  women.  .  .  . 

The  farm  woman  does  not  wish  to  put  up  with  an  unsatisfactory 
to-day  in  the  anticipation  of  something  better  to-morrow  or  in  her 
old  age,  but  wants  a  chance  to  enjoy  to-day  as  the  only  possession 
she  is  sure  of.  She  feels  that  she  owes  it  to  herself  and  her  family 
to  "keep  informed,  attractive,  and  in  harmony  with  life  as  the  years 
advance." 

Women  realize  that  no  amount  of  scientific  arrangement  or  labor- 
saving  appUances  wiU  of  themselves  make  a  home.  It  is,  the  woman's 
personal  presence,  influence,  and  care  that  make  the  home.  House- 
keeping is  a  business  as  practical  as  farming  and  with  no  romance  in 
it;  home-making  is  a  sacred  trust.  "A  woman  wants  time  salvaged 
from  housekeeping  to  create  the  right  home  atmosphere  for  her  chil- 
dren, and  to  so  enrich  their  home  surroundings  that  they  may  gain 
their  ideals  of  beauty  and  their  tastes  for  books  and  music  not  from 
the  shop  windows,  the  movies,  the  billboards,  or  the  jazz  band,  but 
from  the  home  environment."  .  .  . 

The  farm  woman  knows  that  there  is  no  one  who  can  take  her 
place  as  teacher  and  companion  of  her  children  during  their  early 
impressionable  years  and  she  craves  more  time  for  their  care.  She 
feels  the  need  of  making  the  farm  home  an  inviting  place  for  the 
voung  people  of  the  family  and  their  friends,  and  of  promoting  the 
recreational  and  educational  advantages  of  the  neighborhood  in 
order  to  cope  with  the  various  forms  of  city  allurements.  .  .  • 
Farm  women  want  to  broaden  their  outlook  and  keep  up  with  the 
advancement  of  their  children  "not  by  courses  of  study,  but  by  bring- 


RURAL  LIFE  345 

ing  progressive  ideas,  methods,  and  facilities  into  the  everyday  work 
and  recreation  of  the  home  environment." 

The  farm  woman  feels  her  isolation  from  neighbors  as  well  as  Isolation 
from  libraries  and  other  means  of  keeping  in  touch  with  outside  hfe.    .^^^^       '^' 
She  counts  her  favorite  farm  paper  or  woman's  magazine  among  her   the  farm 
valued  aids.    She  beheves  that  farm  women  should  come  together  ^^man. 
more  often  in  organized  groups  to  learn  from  each  other  and  to  gain 
a  mastery  of  their  problems  through  united  effort.     "The  farmer," 
she  declares,   "deals  much  with  other   men.     The   children  form 
associates  at  school,  but  we,  because  of  our  narrow  range  of  duties 
and  distance  from  neighbors,  form  the  habit  of  staying  at  home  and, 
to  a  greater  degree  than  is  commonly  supposed,  feel  the  need  for  con- 
genial companionship."  ... 

The  five  outstanding  problems  pndicated  in  the  study  conducted   The  out- 
by  the  Department  of  Agriculture]  are:  problems  of 

(i)  Shortening   the   working   day  of   the   average   farm   woman,    the  farm 

(2)  Lessening  the  amount  of  heavy  manual  labor  she  now  performs. 

(3)  Bringing  about  higher  standards  of  comfort  and  beauty  for 
the  farm  home. 

(4)  Safeguarding  the  health  of  the  farm  family,  and  especially 
the  health  of  the  mother  and  growing  child. 

(s)  Developing  and  introducing  money-yielding  home  industries 
where  necessary  in  order  to  make   needed  home  improvements. 

149.   The  consolidated  rural  school  ^ 

Of  great  importance  in  the  educational  and  social  life  of  country   Nature  and 

people  is  the  movement  toward  the  consoUdation  of  rural  schools,    ^^ie  move- 

" Consolidation  of  schools"  is  the  term  applied  when  two  or  more   ment  to 

school  districts  are  made  into  a  single  district,  one  school  in  one  build-   j-^^^i 

ing  replacing  two  or  more  small  schools  in  several  buUdings.     The   schools. 

two  primary  motives  in  the  movement  are,  first  the  desire  to  secure 

better  educational  facilities,  and  second  the  desire  to  decrease  the 

cost  of  education  in  the  school  district.     Some  of  the  advantages  of 

the  consolidation  of  rural  schools  are  described  in  the  following  ex- 

1  From  the  United  States  Department  of  the  Interior,  Bureau  of  Education, 
Bulletin,  igi4,  No.  30.  "Consolidation  of  Rural  Schools,"  etc.  Washington,  igi4; 
pp.  60-61,  63-65.  68. 


346 


READINGS  IN  AMERICAN   DEMOCRACY 


Consolida- 
tion facili- 
tates the 
supervision 
of  schools. 


The  classi- 
fication of 
pupils 
allowed  by 
consolida- 
tion is 
beneficial. 


The  advan- 
tage of  the 
longer  reci- 
tation peri- 
ods made 
possible  by 
consoHda- 
tion. 


tract  from  a  bulletin  of  the  Bureau  of  Education  in  the  United  States 
Department  of  the  Interior: 

One  of  the  great  educational  advantages  of  the  consolidated 
school  comes  through  the  possibilities  of  increased  supervision  without 
additional  expenses.  .  .  .  Outside  of  New  England  and  New  York 
the  rural  supervising  officer  is  the  county  superintendent,  and  in  only 
a  comparatively  few  counties  are  assistant  superintendents  or  super- 
visors employed.  Under  average  conditions  a  county  superintendent 
can  not  visit  his  schools  more  than  once  in  a  year,  and  then  the  visits 
must  be  short.  In  many  counties  it  is  a  physical  impossibility  on 
account  of  the  size  of  the  counties,  the  poor  roads,  the  number  of 
schools,  and  the  length  of  the  term,  for  the  superintendent  to  visit 
all  schools  each  year.  .  .  .  Much  of  the  superintendent's  time  is 
lost  in  traveling  from  one  school  to  another.  This  time  is  saved 
with  consolidation.  .  .  . 

In  the  ideal  school,  children  are  grouped  in  classes,  each  class  con- 
taining as  nearly  as  possible  children  of  the  same  degree  of  advance- 
ment. In  the  ordinary  one-teacher  schools  there  are  not  enough  chil- 
dren of  the  same  degree  of  advancement  to  form  classes  large  enough 
for  the  inspiration  coming  from  class  work  and  the  friendly  rivalry 
between  pupils.  .  .  .  The  class  work  in  the  class  of  from  i  to  5  chil- 
dren is  not  interesting.  In  classes  of  from  8  to  20  it  is  interesting. 
Boys  and  girls  enjoy  going  to  school  more;  they  "do"  better  and  they 
attend  more  regularly,  because  of  their  greater  interest.  Attendance 
at  consoHdated  schools,  even  where  transportation  is  not  furnished, 
is  as  a  rule  better  than  at  the  old  district  schools.  .  .  . 

The  excessive  time  allotted  to  study  in  the  rural  school,  in  propor- 
tion to  the  time  given  to  recitation,  is  one  of  the  objectionable  features 
of  the  school.  Few  rural  schools  have  sufficient,  proper,  and  profitable 
reading  material  to  give  to  the  pupils  during  this  long  period.  Few 
pupils  can  spend  profitably  the  time  in  study  because  in  the  short 
recitation  period  the  teacher  has  no  time  to  direct  extensive 
study.  .  .  .  ConsoHdation  of  schools  makes  fewer  classes  to  each 
teacher,  and  consequently  makes  longer  recitation  periods  possi- 
ble. .  .  . 

The  ordinary  teacher  in  the  one-room  country  school  can  teach 
h'tile  but  reading,  spelling,  writing,  arithmetic,  geography,  and  a 


RURAL  LIFE  347 

little  history,  on  account  of  the  difficult  conditions  under  which  she   Consolida- 
is  working.     It  is,  however,  very  desirable  that  music,  drawing,   tion  allows 
sanitation,  manual  training,  household  arts,  and  agriculture  be  taught,   jects  to  be 
both  for  their  general  culture  and  their  utUitarian  values,  and  also  taught. 
for  their  value  as  vitahzing  agents  in  the  school  curriculum.  .  .  . 
[These  additional  subjects  cannot  be  taught  in  the  one-teacher  school, 
but  can  be  taught  when  consolidation  provides]  a  school  of  three 
or  more  teachers.  .  .  . 

"Possibly  one  of  the  greatest  results  accompUshed  by  the  con-   Consolida- 
solidation  of  the  rural  schools  is  the  estabhshment  of  the  township     l^'^  ^"  . 
high  schools.     Students  who  could  not  have  entered  a  high  school  had  high  school. 
they  been  compelled  to  leave  home,  attend  these  schools,  and,  in  most 
cases,  graduate  from  them.  .  .  .  [For  example,]  the  great  increase  of 
students  attending  the  high  schools  in  Indiana  in  the  last  two  years 
is  due  in  great  part  to  the  work  of  consohdated  schools."  .  .  . 

The  added  value  of  the  consohdated  school  over  the  small  one-   Socializing 
teacher  school  as  a  socializing  agency  can  hardly  be  estimated.    The   ^^^^  ^^^_ 
larger  school  brings  its  pupils  into  contact  with  several  teachers  and   tion. 
a  larger  group  of  children  than  in  the  small  school.  .  .  .  This  con- 
tact with  many  children  widens  their  visions  and  gives  to  them  a 
breadth  of  view  impossible  in  the  small  district.  .  .  . 

One  of  the  advantages  of  the  consohdated  school  is  the  possibUity   Consolida- 
of  maintaining  a  stable  teaching  force.  ...   A  permanent  teaching   ^j^^ijjj. 
force  is  essential  in  making  a  school  efficient  and  satisfactory.     It    provement 
is  particularly  desirable  that  a  good  principal  be  obtained  .   .   .  and   ■      ^^^^^ 
retained  as  long  as  his  work  is  satisfactory.     [This  can  be  done  in 
the  case  of  the  consolidated  school   more  often  than  in  the  case  of 
the  smaller  school,  for  where  schools  have  been  consolidated  it  is 
possible  to  pay  teachers  larger  salaries,  while,  in  addition,  the  higher 
standards  of  the  consohdated  school  are  naturally  attractive  to  high- 
grade  teachers.] 

150.   The  development  of  community  spirit  in  the  country^ 

The  reahzation  that   there  is  need  for  a  more  wholesome  social 

life  among  farmers  has  of  recent  years  stimulated  the  development 

*  From  the  Wisconsin  Country  Life  Conference,  r/ijVcf  ^««Ma/ /?e/>or/.    Madison. 
Wis.,  1913;  pp.  111-113,  115-118. 


348 


READINGS  IN  AMERICAN  DEMOCRACY 


The  school 
and  the 
church  as 
social  cen- 
ters in  rural 
districts. 


The  estab- 
lishment of 
a  school- 
house 


in  a  rural 
district  in 
Wisconsin. 


A  Sunday 
School  is 
organized 
and  allowed 
to  use  the 
school- 
house. 


Changed 
viewpoint 
toward  a 
wider  use  of 
the  school 
plant. 


of  community  spirit  in  rural  districts.  The  nucleus  of  rural  social 
life  is  almost  always  either  the  school  or  the  church.  On  the  whole, 
the  rural  school  is  developing  more  rapidly  than  is  the  rural  church, 
and  in  many  sections  social  Ufe  has  tended  to  develop  around  the 
school  rather  than  about  the  church.  The  use  of  the  rural  school 
as  a  social  center  may  be  illustrated  by  the  following  account  of  the 
Mendota  Beach  schoolhouse  in  Dane  County,  Wis.: 

[Formerly  there  was  no  schoolhouse  in  this  vicinity,  i.e.  the  rural 
district  between  Madison  and  Middleton,  Wis.,],  and  as  recently 
as  1900  the  state  superintendent  of  public  instruction  was  obliged 
to  exercise  the  power  given  him  by  law  and  compel  the  organization 
of  a  school  district,  the  engaging  of  a  teacher,  and  the  erection  of 
a  school  building. 

[When  the  schoolhouse  was  built  and]  opened  for  school  purposes 
in  1 90 1,  children  from  the  neighborhood  twelve  years  old  and  over 
attended,  who  up  to  this  time  had  had  no  schooling.  Grown  men  of 
the  neighborhood,  unable  to  read  or  write  the  Enghsh  language, 
although  reared  here  from  childhood,  have  told  how  they  were  too 
far  from  school  to  attend  in  the  winter,  and  in  summer  they  were 
needed  on  the  farm.  .  .  . 

Newcomers  in  the  neighborhood  were  insisting  upon  reUgious 
instruction  for  their  children,  and  were  asking  why  a  Sunday  School 
couldn't  be  opened  in  the  schoolhouse.  It  was  a  new  proposal  and 
at  first  did  not  meet  with  favor.  .  .  .  [But  at  length  better  counsel 
prevailed,  and]  seventeen  persons,  many  of  them  children,  met  at 
the  schoolhouse  on  a  Sunday  afternoon  and  organized  the  Mendota 
Beach  Sunday  School.  That  first  Sunday  it  was  agreed,  and  the 
position  has  ever  since  been  consistently  adhered  to,  that  the  meetings 
should  be  strictly  undenominational;  that  persons  of  any  creed  or 
no  creed  would  be  welcome;  that  the  purpose  of  our  gatherings  would 
be  to  make  us  better  neighbors  and  better  citizens,  and  that  we  would 
make  a  study  of  the  Bible  to  find  in  it  whatever  we  could  that  would 
help  us  in  this  purpose.  .  .  . 

At  each  annual  school  meeting  the  electors  present  vote  on  whether 
the  schoolhouse  shall  be  opened  to  the  Sunday  School  and  other 
community  meetings.  There  was  some  hesitancy  about  authorizing 
these  uses  the  first  time  the  electors  considered  the  question,  but 


RURAL  LIFE  349 

at  subsequent  meetings  the  very  objectors  have  declared  that  in  their 
opinion  the  uses  to  which  the  schoolhouse  has  been  put  outside  of 
school  hours  have  been  of  larger  value  to  the  community  than  the 
regular  school  work. 

At  the  time  these  meetings  were  started  there  were  but  one  or  two   Some  effects 
musical  instruments  in  the  whole  community,   almost   no  singing     ,  ^  '^ , 
ability,  and  only  one  person  who  would  attempt  to  play  the  organ  viewpoint, 
at  the  meetings.    A  singing  teacher  was  engaged  from  the  city,  and 
on  Monday  evenings  for  some  twenty  weeks  the  young  people  gath- 
ered at  the  schoolhouse  and  were  taught  to  sing.     To-day  there  is 
music  in  the  day  school,  music  at  the  Sunday  School,  and  some  musical 
instrument  —  violin,  organ  or  piano  —  in  nearly  every  home.  .  .  , 

The  school  library  had  only  some  fifty  volumes  of  children's  books.    Library  im- 
A  Library  Association  was  organized  two  years  ago  and  a  "one  hun-   P''^'^^'^^'^  • 
dred  volume"  State  Traveling  Library  is  now  regularly  to  be  found 
at  the  schoolhouse  with  the  teacher  as  Hbrarian.  .  .  . 

The  young  people  of  the  neighborhood  have  come  forward  as  an   The  school- 
active  social  force.    They  first  learned  to  sing.    Then  they  arranged     °g"*'jjj"i" 
for  a  series  of  open  social  and  literary  meetings  at  the  schoolhouse.    used  for  so- 
Programs  have  been  arranged  with  music,  declamation,  and  debate, 
and  live  topics  have  been  discussed.    The  young  people  and  even  the 
grown-ups  are  beginning  to  feel  confidence  in  themselves.     "Woman 
Suffrage,"    "Advantages   of    Country  Over    City   Living,"    "Good 
Roads,"  "The  Silo,"  "Alfalfa,"  "How  to  Make  the  Hen  Productive," 
are  some  of  the  subjects  that  have  been  discussed.  .  .  . 

Farm  tenants,  farm  owners,  business  and  professional  people  from  Some  re 
the  city  who  have  moved  into  the  community,  and  artisans  and 
laborers  meet  together  on  a  common  footing  at  the  schoolhouse  and 
get  each  other's  viewpoint.  .  .  .  [The  opening  of  the  schoolhouse 
to  community  uses  has  had  great  value  socially].  .  .  .  The  folks 
are  all  neighbors  now.  .  .  .  They  move  together  and  have  a  sense 
of  individual  and  community,  strength  in  the  consciousness  of 
sympathy  and  union. 


cial  pur- 
poses. 


suits. 


350  READINGS   IN   AMERICAN  DEMOCRACY 


Questions  on  th,e  foregoing  Readings 

1.  What,  in  general,  is  the  cause  of  the  cityward  drift? 

2.  Why  does  discontent  with  farming  usually  mean  discontent  with 

rural  life? 

3.  Explain  the  effect  of  deferred  or    restricted  recreation  upon  dis- 

content with  rural  life. 

4.  How  may  advertising  add  to  rural  discontent? 

5.  What  is  the  primary  aim  of  the  Federal  Farm  Loan  Act? 

6.  What  per  cent  of  the  amounts  loaned  under  the  act  have  been  used 

for  the  purpose  of  buying  farm  land? 

7.  What  are  some  of  the  rules  which  should  be  observed  by  persons 

intending  to  make  use  of  the  Federal  Farm  Loan  Bank  system? 

8.  What  is  the  social  significance  of  the  problem  of  marketing  farm 

produce? 

9.  What  is  the  first  step  in  marketing? 

10.  What  should  be   the  attitude  of  the  farmer  toward  the  storage 

question? 

11.  How  can  the  farmer's  transportation  needs  best  be  met? 

12.  How  might  farmers  strengthen  their  position  as  sellers? 

13.  Compare   young   country   men   and  young   country   women   with 

regard  to  the  tendency  to  move  to  the  city. 

14.  Explain  why  the  farm  woman  needs  more  leisure  time. 

15.  Explain  why  isolation  bears  more  heavily  upon  the   farm  woman 

than  upon  the  men  and  children  in  rural  districts. 

16.  What  are  the  outstanding  problems  of  the  farm  woman? 

17.  What  is  meant  by  the  term  "consolidation  of  rural  schools"? 

18.  What  are  the  two  primary  motives  in  the  movement  to  consolidate 

rural  schools? 

19.  How   does  consolidation  allow  of   more   adequate   supervision  of 

schools? 

20.  What  is  the  advantage  of  consolidation  from  the  standpoint  of 

recitation  periods? 

21.  How  does  consolidation  permit  the  curriculum  of  the  rural  school 

to  be  enlarged? 

22.  Name  two  rural  institutions  around  which  social  life  may  develop. 

23.  Describe  the  beginnings  of  a  school  in  the  rural  district  between 

Madison  and  Middleton,  Wis. 

24.  What  were  some  of  the  results  following  the  use  Of  the  school- 

house  for  community  purposes? 

25.  What  was  the  effect  of  this  wider  use  of   the   schoolhouse  upon 

the  development  of  sympathy  and  cooperation  in  the  community? 


CHAPTER   XXVI 

EDUCATION 
151.    Standardization  of  schools  within  the  state  ^ 

Occasionally  it  is  suggested  that  all  of  our  educational  facilities  The  move- 
ought  to  be  so  standardized  and  coordinated  as  to  form  one  great  ^^^^  ^°' 
,                        .  ward  the 
system.    At  the  present  time,  most  authorities  oppose  this  suggestion;  standardka- 

on  the  other  hand,  there  is  a  general  feeUng  that  it  is  desirable  to   ^^°?  of  edu- 

bring  all  of  the  educational  faciUties  of  a  single  state  under  some   dlities 

sort  of  centraUzed  control.     There  are  a  number  of  states  in  which   ^'^'^^'^  ^^^ 
,  .       .  ,  ,  state, 

the  reorganization  and  centrahzation  of  the  schools  is  a  problem  of 

immediate  interest.     At  the  request  of  the  Arizona  School  Officials' 

Association,  the  United  States  Bureau  of  Education  in  1916  conducted    An  educa- 

an  educational  survey  of  Arizona.     The  foUowng  is  the  Bureau's   tional  sur- 
vey of 
summary  of  recommendations   relating    to   public    elementary  and   Arizona. 

secondary  schools  in  that   state: 

I.  Centralization  of  the  state  school  system,  placing  the  responsi-  Centraliza- 
bility  of  the  administration  of  the  public-school  system  definitely  upon  ^^°^  *^^  }^^ 
the  state  board  of  education  and  the  state  department  of  education  work-  system  rec- 
ing  in  cooperation  with  the  county  boards  of  education  and  school-dis-  ommended. 
trict  trustees. 

The  state  should  exercise  a  sufificient  degree  of  administrative 
control  to  assure  that  schools  are  maintained  wherever  needed  and 
that  all  schools  are  efficient.  This  can  be  done  best  through  the 
following  organization : 

I.  For  the  state,  a  state  board  of  edi.ication  and  a  state  depart- 
ment of  education,  the  state  superintendent  of  public  instruction 
being  the  executive  officer  of  the  state  board  and  the  actual  head 
of  the  department. 

*  From  the  United  States  Department  of  the  Interior,  Bureau  of  Educaiion. 
Bulletin,  igi7,  No.  44.  "Educational  Conditions  in  Arizona."  Washington,  1918; 
PP-  158-162. 

351 


352 


READINGS  IN  AMERICAN  DEMOCRACY 


State  board 
of  education 
to  be  reor- 
ganized. 


Distribution 
of  the 
state  school 
fund. 


Higher 
standards 
for  teachers. 


Rearranged 
courses  of 
study. 


2.  For  each  county,  a  county  board  of  education  to  assume  general 
control  over  the  schools  in  the  county,  with  the  county  superintendent 
as  its  executive  officer. 

3.  For  each  local  district,  urban  and  rural,  a  local  board  of 
trustees.  .  .  . 

2.  Reorganization  of  the  state  board  of  education  conferring  upon 
it  enlarged  powers.  .  .  . 

3.  Provision  for  a  nonpolitical  state  superintendent  who  shall  he 
the  head  of  an  enlarged  and  more  efective  state  department  of 
education.  .  .  . 

4.  Provision  for  county  control  of  county  school  funds  through 
comity  boards  of  education  and  nonpolitical  county  superintendents.  .  .  . 

5.  Reorganization  of  the  method  of  apportioning  state  funds  on  a 
basis  which  recognizes  county  and  local  effort.  .  .  . 

pn  the  distribution  of  the  state  school  fund,]  each  county  should 
receive  a  fixed  sum  for  every  teacher  employed  in  pubUc  elementary 
and  secondary  schools,  the  remainder  of  the  state  school  fund  being 
apportioned  to  the  counties  on  the  basis  of  the  aggregate  at- 
tendance. .  .  . 

6.  Requirement  of  a  higher  standard  of  general  and  professional 
education  for  teachers.  .  .  .  The  state  should  require  that  all  new 
teachers  employed  after  a  certain  date  should  have  general  education 
not  less  than  the  equivalent  of  a  four-year,  standard,  high-school 
course  and  a  stated  amount  of  professional  work  in  education,  con- 
sisting of  classroom  instruction  in  a  recognized  institution  for  training 
teachers.  .  .  . 

8.  Rearranged  courses  of  study  especially  to  meet  the  conditions  in 
one-teacher  schools. 

The  state  course  of  study  should  be  arranged  in  such  a  way  as  to 
make  it  adaptable  to  one-teacher  schools,  to  two-teacher  schools 
and  to  schools  with  three  or  more  teachers.  .  The  course  should  be 
gradually  revised  to  make  it  fit  more  closely  the  conditions  peculiar 
to  the  state.  .  .  . 


EDUCATION 


353 


152.   Financing  the  school  system^ 

It  has  always  been  more  or  less  difficult  to  secure  the  funds  neces- 
sary to  equip  and  maintain  our  schools.  In  recent  years  this  diffi- 
culty has  been  increased  by  two  factors.  In  the  first  place,  the  cost 
of  materials,  equipment,  and  teachers  has  increased;  in  the  second 
place,  the  rapid  increase  in  the  number  of  school  activities  has  neces- 
sitated larger  and  larger  sums  of  money.  The  adequate  support  of 
the  schools  is  thus  a  problem  of  pressing  importance.  Some  of  the 
aspects  of  this  problem  may  be  illustrated  from  the  following  sum- 
mary of  a  survey  of  the  public  schools  of  the  city  of  Columbia,  South 
CaroUna,  issued  by  the  United  States  Bureau  of  Education  in  191 8: 

1.  The  public  school  system  of  Coliunbia  was  organized  in  1883 
only  after  a  hard  struggle  to  overcome  those  who  protested  against 
"taxing  one  man's  property  to   educate  another  man's  child." 

2.  For  15  years  after  the  organization  of  the  system  no  provision 
was  made  for  the  erection  of  school  buildings.  No  adequate  building 
program  was  undertaken  until  1905.  The  bonded  indebtedness  for 
buildings  for  school  purposes  now  reaches  but  $273,000. 

3.  Tax  levies  for  school  maintenance  have  been  begrudgingly 
allowed. 

4.  Of  the  213  cities  of  the  United  States  having  a  population  of 
30,000  or  more,  Columbia  stands  third  from  the  bottom  in  the  propor- 
tion of  the  total  annual  expenditure  of  the  city  which  goes  to  the  sup- 
port of  the  schools.  Her  proportionate  school  expenditure  would 
have  to  be  increased  one-half  to  bring  her  up  to  the  average  of  the 
cities  of  this  country.  .  .  . 

6.  If  Columbia  doubled  her  school  maintenance  and  then  added 
to  this  $3  per  pupil  she  would  just  reach  the  average  per  pupil  in 
average  daily  attendance  expended  by  1,233  cities  of  the  United 
States  having  a  population  of  5,000  or  more.  She  will  have  to  in- 
crease her  expenditure  by  42  per  cent  to  reach  the  average  expended 
per  pupil  in  average  daily  attendance  by  the  cities  of  the  South 
Atlantic  States  having  a  population  of  5,000  or  more. 


Why  the 
problem  of 
financing 
the  schools 
is  increas- 
ingly im- 
portant. 


The  public 
school  sys- 
tem of 
Columbia, 
South 
Carolina. 


Columbia 
spends  rela- 
tively little 
on  her 
schools. 


A  compari- 
son. 


'  From  the  United  States  Department  of  the  Interior,  Bureau  of  Education. 
Bulletin,  1918,  No.  28.  "The  PubUc  Schools  of  Columbia,  South  Carolina."  Wash- 
ington, 1918;  pp.  28-30. 


354 


READINGS  IN  AMERICAN  DEMOCRACY 


The  tax 
rate  is  low, 
and 


the  city 
is  rich. 


A  campaign 
for  more 
funds  is  rec- 
ommended. 


Methods  of 
carrying  on 
the  cam- 
paign. 


Conclusion. 


7.  The  true  general  tax  rate  of  Columbia  for  all  purposes  is  very 
low;  excepting  three  it  has  the  lowest  true  tax  rate  of  the  cities  of 
the  United  States  which  have  a  population  of  30,000  or  over. 

8.  Columbia  is  one  of  the  twelve  richest  cities  of  the  United 
States,  having  an  estimated  property  value  of  $1,836  per  capita  of 
population. 

Q.  The  school  commissioners  should  take  the  initiative  in  in- 
forming the  public  in  forceful  ways  of  the  needs  of  the  schools,  and 
of  the  service  they  are  rendering,  in  order  that  adequate  maintenance 
may  be  secured.  .  .  . 

[It  is  not  enough  formally  to  request  an  advance  in  the  tax  rate.] 
Those  responsible  must  first  present  their  case  to  the  people  who 
make  up  the  community.  .  .  . 

The  estabhshed  method  of  winning  the  active  attention  of  a  com- 
munity is  that  of  pubhcity,  and  no  opportunity  for  informing  the 
people  about  their  schools  —  their  aims,  their  work,  their  cost,  their 
problems  —  should  ever  be  let  go  by.  Through  the  columns  of  the 
local  press,  through  bulletins  issued  on  special  phases  of  school  work, 
through  talks  before  civic  bodies  on  matters  pertaining  to  education, 
through  exhibits  of  pupils'  work  which  will  arouse  the  collective 
interest  and  pride  of  the  parents,  through  the  medium  of  the  parent- 
teachers'  associations,  and  in  many  other  ways  easily  discoverable, 
there  can  be  kept  up  a  constant  process  of  dissemination  of  news 
about  the  schools. 

Furthermore,  it  must  not  be  overlooked  that  the  parents  of  the 
children  who  ,are  in  school  are  the  people  who  make  up  the  com- 
munity group  and  who  determine  what  tax-levying  bodies  shall 
do.  It  ought  not  to  be  a  difficult  matter  to  convince  the  parents 
of  the  educational  needs  of  their  children,  nor  of  the  value  of  what 
the  schools  are  doing,  nor  of  the  necessity  for  concerted  action  to 
secure  reUef.  .  .  . 


153.    Compulsory  school  attendance  ^ 

For  many  years  one  of  the  problems  confronting  the  school  au- 
thorities has  had  to  do  with  the  attendance  at  school  of    children 

1  From  the  United  States  Department  of  the  Interior,  Bureau  of  Education. 
Bulletin,  1914,  No.  2.  "Compulsory  School  Attendance."  Washington,  1914; 
pp.  12,  16-17,  20,  22-24. 


EDUCATION 


355 


of  school  age.  As  late  as  1890  only  twenty-seven  states  had  com- 
pulsory attendance  laws,  though  by  1914  forty-three  states  had  en- 
acted this  type  of  legislation.  The  enactment  of  such  legislation 
has  met  with  considerable  opposition  in  some  states,  and  in  num- 
erous cases  the  laws  passed  are  defective.  Some  of  the  phases  of 
the  school  attendance  problem  are  outlined  in  the  following  ex- 
tract from  a  report  of   the  United  States  Bureau  of  Education: 

Notwithstanding  the  fact  that  most  states  have  enacted  com- 
pulsory attendance  laws,  many  of  them  fail  to  enroll  all  the  children 
coming  within  the  provision  of  the  law  and  to  secure  regular  attend- 
ance on  the  part  of  those  enrolled.  This,  however,  does  not  mean 
that  compulsory  attendance  is  a  failure,  as  those  states  that  have 
such  laws  enroll  a  greater  percentage  of  children  and  have  a  higher 
average  of  attendance  than  those  states  that  have  no  such  laws. 
Cities  that  have  recently  made  trial  for  the  first  time  of  compelling 
attendance  report  excellent  results.  .  .  . 

One  of  the  most  difficult  problems  to  solve  in  enforcing  the  com- 
pulsory attendance  laws  is  that  of  compeUing  children  from  poverty- 
stricken  homes  to  attend  school.  ...  To  compel  the  attendance 
of  children  of  parents  who  are  too  poor  to  keep  them  in  school,  some 
states  have  taken  decided  steps.  In  Michigan  if  a  parent  can  not 
support  a  child  of  compulsory  school  age,  the  board  of  education 
may  grant  such  rehef  as  will  enable  the  child  to  attend  school  dur- 
ing the  entire  school  year,  not  more  than  $3  a  week  to  be  paid  a 
family  for  one  child,  nor  more  than  $6  a  week  for  the  children  of 
any  one  family.  ...  All  cases  must  necessarily  be  thoroughly  in- 
vestigated. In  Cincinnati  the  board  of  education  has  made  arrange- 
ments with  the  local  associated  charities  to  have  all  cases  reported 
by  truant  officers  investigated  by  the  trained  social  workers  of  that 
organization.  ReUef  is  afforded  only  when  recommended  by 
them.  .  .  . 

To  enroll  children  of  compulsory  school  age  is  but  the  first  step 
in  enforcing  compulsory-attendance  laws;  the  next  step  is  to  secure 
regular  attendance,  ...  If  pupils  are  to  be  promoted  promptly 
and  regularly,  and  if  the  schools  are  to  reach  their  full  measure 
of  efficiency,  the  school  oflicials  must  not  only  enroll  all  the  children 
of  compulsory  school  age,  but  must  also  secure  regular  attendance 


Develop- 
ment of 
compulsory 
school 
attendance 
laws. 


Attendance. 


The     ques- 
tion of 
compelling 
the  attend- 
ance of  the 
children  of 
poor  par- 
ents. 


Securing 

regular 

attendance. 


356 


READINGS  IN  AMERICAN  DEMOCRACY 


Need  for 
oflBcials 
charged 
with  the 
enforcement 
of  the  law. 


Determining 
the  proper 
age  limit. 


Summary. 


for  the  whole  term.       [This  is  so  because  the  more  irregular  the 
attendance  of  the  pupil,  the  slower  the  rate  of  promotion.]  .  .  . 

It  is  obvious  that  no  law  can  be  enforced  without  proper  of- 
ficials charged  with  its  enforcement.  .  .  .  State  agents  are  un- 
doubtedly of  great  assistance  in  the  proper  enforcement  of  the 
attendance  law.  At  present  in  most  states  the  state  department  has 
no  direct  way  of  knowing  whether  more  than  a  perfunctory  attempt 
has  been  made  to  carry  out  the  provisions  of  the  law.  .  .  . 

One  other  problem  difficult  to  solve  in  the  enactment  of  com- 
pulsory attendance  laws  is  that  of  determining  the  proper  age  limits. 
The  tendency  at  present  is  to  make  14  or  15  years  the  age  at  which 
a  child  may  withdraw  from  school,  provided  he  has  certain  educa- 
tional attainments.  The  standard  is  low  in  most  states,  only  a  few 
requiring  so  much  as  the  completion  of  the  fifth  grade.  The  tendency, 
however,  is  to  strengthen  the  required  educational  quahfications 
regardless  of  age  limit.  .  .  . 

[In  summary,  the  most  important  factors  in  the  enforcement 
of  the  compulsory  school  attendance  laws  are  as  follows:] 

1.  An  annual  school  census  taken  by  the  school  authorities  of 
the   city  or   district. 

2.  Prompt  reports  by  teachers  of  pubHc  and  private  schools  of 
all  absentees  not  legally  excused. 

3.  Properly  qualified  attendance  officers,  who  give  all  their  time 
and  attention  to  the  enforcement  of  the  law,  and  also  school  visitors 
in  cities  having  a  large  foreign  or  Negro  population. 

4.  State  agents  to  see  that  the  laws  are  enforced. 

5.  Special  schools  for  truants  and  pupils  irregular  in  attendance. 

6.  Relief    for   indigent    parents    having    children    of   compulsory 


age. 

7- 
8. 

9- 


A  definite  annual  period  of  attendance. 

Well-enforced   child-labor  laws. 

Employment  certificates  made  to  employer  and  not  to  be  used 
by  child  when  seeking  a  new  position. 

10.   Proper  penalties  on  all  concerned  in  the  enforcement  of  the 
law. 


EDUCATION 


357 


154.    Problems  in  vocational  education  ^ 

Vocational  education  in  schools  is  a  comparatively  recent  develop- 
ment, involving  a  large  number  of  unsolved  problems.  Some  of 
the  questions  raised  by  the  vocational  education  movement  have 
been  formulated  by  the  United  States  Bureau  of  Education  as 
follows: 

Problem  i.  To  what  extent  do  studies  designed  for  liberal  educa- 
tion "function"  \^i.e.  realize  their  intended  ends]  as  to  their  con- 
tent in  various  fields  of  vocational  training?  For  example,  do  Latin, 
ancient  history,  and  algebra  "function"  at  all  in  the  training  of 
the  physician  for  his  vocation?  Do  mechanical  drawing  and  science 
"function"  in  the  making  of  the  bookkeeper?  Does  the  study  of 
music  and  art  make  any  recognizable  contribution  toward  the  efi&- 
ciency,  on  the  vocational  side,  of  the  machinist,  the  farmer,  or  the 
cook? 

Problem  2.  To  what  extent  is  it  expedient  and  desirable  that  the 
beginnings  of  systematic  vocational  education  shall  be  postponed 
until  after  a  definite  degree  of  general  or  liberal  education  has  been 
attained?  For  example,  if  we  assume  that  pupils  are  required  to 
attend  school  until  14  years  of  age,  is  it  expedient  or  desirable  that 
from  12  to  14  a  program  consisting  in  part  of  vocational  and  in  part 
of  liberal  education  shall  be  made  available? 

Problem  j.  To  what  extent  and  under  what  conditions  do  the 
results  in  skiU,  knowledge,  appreciation,  and  ideals  (or  of  practical 
experience  in  general)  in  one  occupational  field  constitute  an  asset 
for  entrance  into  another?  To  what  extent  can  [these  results] 
be  utiHzed  as  a  basis  for  systematic  training  toward  another  occupa- 
tional field? 

CFor  example]:  (a)  To  what  extent  does  expertness  in  running 
constitute  an  asset  in  learning  to  swim?  (b)  To  what  extent  can  a 
thoroughgoing  education  in  the  practice  of  medicine  be  utiHzed 
when  the  doctor  wishes  to  become  a  farmer?  (c)  How  far  can  pro- 
fessional competency  as  a  bookkeeper  be  regarded  as  an  asset  when 

*  From  the  United  States  Department  of  the  Interior,  Bureau  of  Education. 
Bulletin,  IQ16,  No.  21.  "Vocational  Secondary  Education."  Washington,  1916; 
PP-  143-144.  146,  151-153- 


Status  of 

vocational 

education. 


Relation  of 
general  or 
liberal  to 
vocational 
education. 


When 

should 

vocational 

education 

begin? 


The  prob- 
lem of 
transferring 
the  results 
of  voca- 
tional edu- 
cation. 


Some 
examples. 


358 


READINGS  IN  AMERICAN  DEMOCRACY 


Problem  of 
dividing 
attention 
between 
technical 
and  practi- 
cal training. 


At  what 
age  should 
home-making 
education 
begin? 


the  bookkeeper  wishes  to  become  a  machinist?  {d)  If  a  man  has 
been  well  trained  as  a  machinist,  to  what  extent  can  such  training 
be  drawn  upon  in  equipping  him  to  be  a  house  carpenter?  .  .  , 

Problem  5.  What,  at  any  given  stage  of  vocational  training  for 
the  industrial  occupations,  should  be  the  proportion  of  time  and 
energy  of  the  pupil  given,  respectively,  to  technical  instruction 
and  to  practical  training?  Extreme  and  opposed  examples  of  the 
problem  under  consideration  are  the  following:  In  the  making  of 
a  m^achinist,  a  boy  beginning  at  the  age  of  14  might  devote  his  first 
two  years  very  largely  to  such  technical  studies  as  drawing,  mathe- 
matics .  .  .  and  .  .  .  give  a  minimum  amount  of  attention  to  pro- 
ductive shopwork  of  a  thoroughly  practical  nature.  Between  his 
sixteenth  and  eighteenth  years  the  proportion  of  time  given  to  his 
shopwork  might  be  very  greatly  increased,  with  a  diminution  of  the 
amount  of  attention  given  to  technical  work.  On  the  other  hand,  a 
prograrn  of  training  might  be  devised  by  which  during  the  first  year 
he  might  give  from  60  to  80  per  cent  of  his  time  to  productive  shop- 
work,  with  relatively  only  a  small  amount  of  technical  instruction 
related  to  it.  In  his  later  years  the  proportion  of  time  given  to 
shopwork  might  be  diminished,  and  the  proportion  of  time  given  to 
technical  instruction  might  be  greatly  increased.  .  .  . 

Problem  6.  At  what  age  is  efficient  homemaking  education  most 
practicable?  It  is  quite  probable  that  there  must  be  differentiation 
of  groups  for  homemaking  education,  according  to  age  as  affected 
by  the  occupations  followed.  For  example,  it  may  be  doubted 
whether  girls  who  from  14  to  21  years  of  age  wiU  be  wage-earners 
in  occupations  not  related  to  the  home,  and  who  will  be  living  either 
at  home  as  boarders  or  in  boarding  houses,  can  efficiently  respond 
to  vocational  homemaking  education  until  somewhat  late  in  their 
wage-earning  careers.  ...  In  the  case  of  girls  not  contemplating 
wage-earning  careers,  but  who  design  to  remain  at  home,  systematic 
vocational  education  might  weU  take  place  during  the  high-school 
period.  ... 


EDUCATION  359 


155.   Wider  use  of  the  school  plant 


1 


Formerly  our  public  schoolhouses  were  open  only  during   the  The  begin- 

conventional  school  term,  and  for  children  of  legal  school  age.    Since   "'."P  °^  ^^^ 

wider  use 

the  beginning  of  the  present  century,  however,  there  has  been  a   of  the 

growing  use  of  the  school  plant  for  community  activities.    This  wider   school  plant 
^  "  .  ,    ,  •  movement, 

use  of  the  school  plant  has  increased  the  variety  and  scope  of  educa- 
tional activities,  and  has  greatly  enlarged  the  number  of  individuals 
who  come  under  educational  influences.  Some  phases  of  this  move- 
ment are  treated  in  the  following  extract  from  a  report  of  the  United 
States  Bureau  of  Education: 
[To  what  type  of  social  activities  has  the  wider  use  of  the  school  Types  of 

plant  movement  given  rise?]     The  three  most  prevalent  activities   ^"i^'^'^^^ 

^  _  which  figure 

are  some  form  of  athletics,  clubs  for  young  people,  and  lectures,  in  the  move- 
while  the  least  common,  as  would  have  been  expected,  are  the  civic  n^^"*^- 
and  the  general  social  occasions.  A  school  which  is  the  scene  of  fre- 
quent mass  meetings,  banquets,  and  neighborhood  parties  has  reached 
a  completeness  of  socialization  that  is  as  yet  not  so  very  common. 
Athletics,  club-work,  and  rooms  for  reading  or  quiet  games  are 
regular  activities  in  go  or  more  per  cent  of  the  cases  reported.  .  .  . 
Lectures  and  entertainments,  while  .  .  .  [prevalent],  do  not  stand 
so  high  in  regularity,  because  of  their  popularity  in  schools  whose 
extension  activity  is  still  in  its  early  and  rather  miscellaneous  stage. 
Games  and  clubs  are  naturally  not  started  until  a  series  of  meetings 
or  events  can  be  arranged.  The  high  degree  of  regularity  attained 
by  social  dancing  indicates  that  it  [occupies  a  strong  position  in  the 
extension  movement.]  .  .  . 

The  length  of  the  school  extension  season  in  the  different  cities    The  school 
varies  greatly.     In  a  few  it  lasts  throughout  the  year;    in  a  small   ^^'''^^"sion 
number,  October  and  April  mark  its  limits;   in  many  places  it  does 
not  get  well  under  way  until  some  time  in  November,  and  gradually 
tapers  off  in  March.  .  .  . 

Brief  mention  only  can  be  made  of  the  growth  in  activities  in 
public  schoolhouses  during  the  interval  between  the  afternoon  dis- 

*  From  the  United  States  Department  of  the  Interior,  Bureau  of  Education. 
Bulletin,  igis,  No.  28.  "The  Extension  of  Public  Education."  Washington, 
1915;  pp.  41-42,  49,  51-52- 


360 


READINGS  IN  AMERICAN  DEMOCRACY 


Wider  use 
of  the 
school  plant 
before 

0   P.M. 


Letting  reg- 
ulations. 


Generous 
attitude  of 
the  Joliet 
(111.)  Board 
of  Educa- 
tion. 


Activities 
which  the 
Board  will 
favor  and 
partially 
support. 


missal  of  classes  and  nightfall.  In  high  schools  this  has  long  been 
a  favorite  period  for  meetings  of  student  societies  and  athletic  con- 
tests both  in  and  out  of  doors,  and  now  a  similar  practice  has  got 
under  way  in  the  elementary  schools.  .  .  .  For  example,  in  Grand 
Rapids,  Mich.,  parochial  classes  in  domestic  science  use  the  pubhc 
schools  on  certain  afternoons  from  4  to  6  o'clock,  and  three  times 
a  week  the  parents'  council  meets  at  3:30  p.m.  In  Evanston,  111., 
a  children's  class  in  gymnastic  dancing  supported  by  membership 
fees,  a  children's  orchestra,  the  room  basketball  teams,  and  several 
other  pupil  organizations  keep  school  buildings  open  after  the  ordi- 
nary closing  time.  These  are  samples  only  of  the  miscellaneous 
afternoon  occasions  which  are  developing  spontaneously  in  the 
schoolhouses  of  many  cities.  .  .  . 

The  marked  increase  of  late  years  in  miscellaneous  evening  occa- 
sions in  school  buildings  is  largely  due  to  the  new  spirit  which  has 
appeared  in  school  letting  rules.  It  does  not  pervade  all  of  them, 
but  each  year  sees  an  extension  of  its  vogue.  It  is  weU  expressed  in 
the  following  regulations  (published  March,  19 14)  recently  adopted 
by  the  Joliet   (111.)   Board  of  Education: 

In  order  that  the  pubhc  school  plant  may  serve  a  wider  community 
use,  the  board  of  school  inspectors  will  bear  the  expense  of  Ught- 
ing,  heat,  and  janitor  service  when  the  school  is  used  for  the 
following  purposes: 

(i)  Adult  clubs  or  organizations  for  the  discussion  of  educational, 
civic,  and  community  problems. 

(2)  Public  lectures,  entertainments,  or  indoor  recreational  or 
educational   activities. 

(3)  Club  work  among  young  people  —  Hterary,  musical,  dramatic, 
social  —  under  supervision  arranged  by  the  school  authorities. 

(4)  Political  discussions  may  be  permitted  when  announced  in 
advance,  and  equal  opportunity  given  for  presentation  of  both 
sides  of  the  question,  in  accord  with  the  American  spirit  of  fair 
play.  .  .  . 


EDUCATION  361 

156.   The  money  value  of  education  ^ 

The  most  valuable  result  of    right  education  is  the  broadening,    Education 

deepening,  and  refining  of  human  hfe.     This  result  can  no  more  be   ^^^^^ 

measured  by  dollars  and  cents  than  can  truth,    self-sacrifice,  and   by  dollars 

love;   nevertheless,  the  material  and  measurable    rewards  of  educa-   t^[  cents, 
'  '  but  It  IS 

tion  should  be  made  plain  to  those  who  are  either  incHned  or  obliged   nevertheless 
to  judge  an  educational  system  in  terms  of  money  return.     Anything   ""Po^^"* 
which  will  show  that  education  promotes    industrial  efficiency  and   its  money 
increases  material  wealth  will  help  to  secure  the  support  of   certain   '^^^^• 
types  of  taxpayers  and  numerous  classes  of  pupils.      In  the  follow- 
ing extract  the  United  States  Bureau  of    Education  discusses  the 
money  value  of  education: 

An  investigation  of  the  educational  advantages  enjoyed  by  the  who's  Who 
8,000  persons  mentioned  in  Who's  Who  in  America,  for  the  years  ^"  America. 
1899-1900,  brought  out  the  following  facts:  Out  of  the  nearly  five 
million  uneducated  men  and  women  in  America,  only  31  have  been 
sufficiently  successful  in  any  kind  of  work  to  obtain  a  place  among 
the  8,000  leaders  catalogued  in  this  book.  Out  of  33,000,000  people 
with  as  much  as  a  common-school  education,  808  were  able  to  win 
a  place  in  the  list,  while  out  of  only  2,000,000  with  high-school 
training,  1,245  have  manifested  this  marked  efficiency,  and  out  of 
1,000,000  with  college  or  university  training,  5,768  have  merited 
this  distinction.  .  .  . 

In  interpreting  the  results  of  this  study,  as  in  the  interpretation   Despite 

of  all  of  the  following  comparative  studies  of  those  who  have  educa-   ynodifying 

influences, 
tion  with  those  who  do  not  have  it,  let  it  be  understood   that  the   the  success 

remarkable  superiority  of  the  educated  must  not  be  attributed  en-   °!,^^':  j"^'" 

^  _  -^  vidual  de- 

tirely  to  their  education.    Those  who  receive  education  are  a  selected   pends  largely 
lot  to  begin  with.     Their  parents  were,  as  a  ride,   persons  of  more   "P°"  . 
than  average  efficiency,  and  hence  were  able  to  keep  their   children 
in  school;    they  were  more  intelligent  than  the  average,   and  there- 
fore induced  or  required  their  children  to  remain  in  school.     The 
child  himself  probably  had  more  than  average  ability,  else  he  wovdd 

*  From  the  United  States  Department  of  the  Interior,  Bureau  of  Education. 
Bulletin,  igi7,  No.  22.  "The  Money  Value  of  Education."  Washington,  igi;; 
PP-  15,  17,  23,  31-33- 


The  edu- 
cated man 
fails  less 
often  than 
does  his  un- 
educated 
fellow. 


Every  day 
at  school 
worth  nine 
dollars. 


362  READINGS  IN  A^IERICAN  DEMOCRACY 

have  wearied  of  the  intellectual  labor  of  the  school  and  would  have 
left  it  eariy.  .  .  .  Other  influences  also  doubtless  modify  the  result; 
but  after  due  allowance  for  all  these  factors  is  made  there  remains 
still  a  large  margin  of  superior  efficiency  on  the  part  of  the  educated 
that  one  must  credit  to  education.  .  .  . 

[A  study  conducted  by  H.  J.  Hapgood]  brought  out  especially 
the  large  per  cent  of  successes  among  college-bred  men  in  responsible, 
high-salaried  positions,  and  the  comparatively  small  per  cent  of 
successes  on  the  part  of  the  non-college-bred  men.  He  says:  "A 
notable  instance  of  the  value  of  college  men  is  furnished  by  the 
Western  Electric  Co.,  which  began  emplo>ang  college  men  about 
ten  years  ago,  and  has  found  that  90  per  cent  of  them  make  good, 
as  compared  with  10  per  cent  of  the  men  who  enter  business  on 
leaving  the  high  or  grammar  school.  ..." 

[Studies  conducted  in  Springfield  (Mass.),  and  Brookljm,]  repre- 
sent a  fair  average  of  what  may  be  expected  as  a  result  of  a  good 
school  system.  .  .  .  The  hfe  expectancy  of  the  average  high-school 
boy  is  more  than  40  years.  If  we  [assume,  as  statistics  show  that 
we  have  a  right  to  assume,  an]  average  annual  salary  of  $1,000  for 
a  period  of  40  years,  and  compare  it  with  the  ilUterate  laborer's 
salar>'  of  $500  per  year  for  the  same  length  of  time,  we  can  see  how 
richly  the  child  and  the  community  are  repaid  for  each  day  the  child 
attends  school. 

Si, 000  for  40  years  equals $40,000 

S500  for  40  years  equals 20,000 

Difference $20,000 

Twelve  years  of  180  days  each,  or  a  total  of  2,160  days  of  school, 
bring  the  child,  therefore,  an  added  hfe  income  of  $20,000,  or  a 
return  of  between  nine  and  ten  dollars  for  each  day  spent  in 
school.  .  .  . 


Questions  on  the  foregoing  Readings 

1.  What,  at  present,  is  the  attitude   of  most  authorities  toward  the 

question  of  standardizing  all  of  the  educational  facilities  of  the 
nation? 

2.  What  were  the  recommendations  of  the  U.  S.  Bureau  of  Education 


EDUCATION  363 

with  regard  to  the  centralization  of  the  state  school  system  in 
Arizona? 

3.  Outline  the  recommendations  of  the  Bureau  with  respect  to  higher 

standards  for  teachers  in  Arizona. 

4.  Why  is  the  problem  of  financing  the  schools  increasingly  important? 

5.  Compare  the  amounts  spent  on  the  schools  of  Columbia,  South 

Carolina,  with  the  amounts  expended  for  this  purpose  in  other 
cities. 

6.  What  are  some  elements  in  a  campaign  to  secure  more  adequate 

financial  support  of  the  schools? 

7.  Why  ought  it  not  to  be  difficult  to  secure  this  support? 

8.  How  many  states  had  compulsory  attendance  laws  by  1914? 

9.  Discuss  the   problem  of  securing   the   school  attendance  of  the 

children  of  poor  parents. 

10.  What  is  the  importance  of  state  agents  charged  with  the  enforce- 

ment of  the  school  attendance  laws? 

11.  What  is  the  present  tendency  with  regard  to  setting  the  age  limits 

in  compulsory  attendance  law^s? 

12.  Summarize  the  important  factors  in  the  enforcement  of  compul- 

sory school  attendance  laws. 

13.  Give  an  example  of  a  problem   which   may  arise  in  connection 

with  the  relation  of  general  or  liberal  to  vocational  education. 

14.  What  problem  arises  in  connection  with  the  time  at  which  vo- 

cational education  should  be  begun? 
15-    Give  some  examples  of  problems  which  arise  in  connection  with 
the  transference  of  the  results  of  vocational  education. 

16.  Illustrate   the  difficulty  of   dividing  the   pupil's  time  and   energy 

between  technical  and  practical  training. 

17.  At  what  age  should  home-making  education  be  begun? 

18.  Name  some  activities  which  figure  prominently  in  the  wider  use 

of  the  school  plant  movement. 

19.  Give  an  example  of  the  wider  use  of  the  school  plant  between  the 

dismissal  of  afternoon  classes  and  nightfall. 

20.  Summarize  the  attitude  of  the  Joliet   (111.)   Board  of  Education 

toward  the  wider  use  of  the  school  plant. 

21.  Why  is  it  important  to  point  out  the  money  value  of  education? 

22.  What  did  a  study  of  WIto's  Who  in  Anicrira  reveal  as  to  the  value 

of  education? 

23.  Illustrate  the  statement  that  "  the  educated  man  fails  less  often  " 

than  the  uneducated. 

24.  What  were  the  results,  so  far  as  the  money  value  of  education  is 

concerned,  of  the  studies  conducted  in  Springfield  (Mass.)  and 
Brooklyn? 


PART   IV  — AMERICAN   POLITICAL   PROBLEMS 
a.  SoiiE  Economic  Functions  of  Government 


Rapid  de- 
velopment of 
the  corpo- 
rate form  of 
business  or- 
ganization. 


The  begin- 
nings of 
what  later 
developed 
into  the 
U.S.  Steel 
Corporation. 


The  busi- 
ness, origi- 
nally small, 
grows  rapidly 
after  the 
Civil  War. 


CHAPTER  XX\TI 
PUBLIC   INTEREST   IN   BUSINESS:   REGULATION 

157.   An  example  of  industrial  combination  ^ 

One  of  the  most  spectacular  chapters  in  the  history  of  industry 
deals  with  the  origin  and  development  of  those  business  organizations 
which  are  popularly  kno\vn  as  trusts.  Formerly  most  businesses 
were  carried  on  either  by  individuals  or  by  a  small  number  of  part- 
ners; within  the  last  half  century  there  has  been  so  steady  a  develop- 
ment of  corporate  organization  that  to-day  the  great  corporation 
is  the  dominant  form  of  business  organization.  In  the  following 
selection  Professor  Chester  W.  Wright  illustrates  the  development 
of  "big  business"  by  tracing  the  history  of  the  United  States 
Steel  Corporation: 

In  the  year  1858  one  Andrew  Kloman  and  his  brother  started  a 
small  iron  forge  at  Allegheny,  Pa.  Their  plant  was  worth  about 
$5,000.  They  made  a  reputation  for  putting  out  good  and  reliable 
products,  particularly  axles  for  railroads,  and  the  business  pros- 
pered. .  .  .  During  the  Civil  War  the  demand  for  iron  was  enor- 
mously increased  and  the  iron  and  steel  industry  grew  rapidly  and 
was  very  prosperous.  [In  1863  Andrew  Carnegie  bought  an  interest 
in  the  business,  and]  in  1865  this  partnership  was  consolidated  with 
another  in  which  Carnegie  also  had  an  interest,  and  took  the  name 
of   the  Union  Iron   Mills   Co.  .  .  . 

The  Union  Iron  Mills  consumed  large  quantities  of  pig  iron,  and 

the  owners  decided  that  they  could  obtain  it  at  less  cost  if  they  made 

their  oviTi  pig  iron  instead  of  bujing  it.     In  1870  a  group  of  them 

organized  a  separate  company  and  erected  the  Lucy  blast  furnace 

1  From  the  United  States  Department  of  the  Interior,  Bureau  of  Education, 
Lessons  in  Community  and  National  Life.  Washington,  1918.  Series  A;  pp.  209- 
212,  217-218. 

364 


PUBLIC  INTEREST  IN  BUSINESS:   REGULATION       365 

to  smelt  ore  and  make  pig  iron.  .  .  .  In  1874  a  number  of  men  con- 
nected with  the  Union  Iron  Mills  and  some  others  who  were  interested 
in  railroads  organized  the  Edgar  Thomson  Steel  Co.,  and  a  very 
efficient  big  plant  was  erected  for  the  manufacture  of  steel  rails.  .  .  . 

Another   step   toward  integration   and   the   further   harmonizing   Further 
of  interests  was  taken  in  1881  when  the  Thomson  steel  works,  the   ^rowt    an 
Lucy  furnaces,  the  Union  Iron   Mills,  and  some  coke  properties,   tion,  in 
together  with  $1,000,000  new  capital,  were  all  combined  into  one   r^^neeie^ 
firm  with  a  capital  of  $5,000,000.    Mr.  Carnegie,  who  had  on  various   figures  prom- 
previous  occasions  acquired  the  interests  of  some  of  his  partners   "^^^  ^' 
in  these  concerns,  owned  a  httle  more  than  half  of  the  stock  of  this 
company  and  it  was  known  as  Carnegie  Bros.  &  Co.  (Ltd.).     A 
further  important  move  toward  integration  was  made  the  following 
year  when  the  Carnegie  interests  purchased  a  large  amount  of  stock 
in  the  Frick  Coke  Co.,  which  was  the  dominant  owner  of  coal  lands 
and  coke  ovens  in  the  Connellsville  district,  whence  came  the  best 
coking  coal  used  in  smelting  iron  ore. 

In  1881  some  competitors  of  the  Carnegie  Co.  opened  a  big  plant   The  elimi- 

at  Homestead  for  the  manufacture  of  steel  ingots,  billets,  and  rails,   ii^^'on  of 

competitors. 
but  they  met  with  financial  difficulties  and  two  years  later  sold  out 

to  the  Carnegie  interests.  ...  In  1890  another  threatening  rival 
was  eUminated  .when  the  newly  erected  Duquesne  steel  works  were 
purchased.  In  1892  the  various  Carnegie  interests  were  again  con- 
solidated in  the  Carnegie  Steel  to.  (Ltd.),  with  a  capital  of 
$25,000,000.  .  .  . 

There  were  also  organized  during  these  years,  .  .  .  the  Federal  The  develop- 
Steel  Co.  .  .  .  and  the  National  Steel  Co.  .  .  .  Both  of  these  steel  "^^"^  ^^  ""^^ 

competitors 
companies  were  combinations  of  other  companies  and  both  were 

competitors  of  the  Carnegie  Steel  Co.  Seeing  dangers  of  competition 
ahead,  the  Carnegie  companies  threatened  low  prices  and  the  loss 
of  big  profits  which  prosperity  seemed  to  promise.  Moreover,  the 
bankers  and  promoters  who  still  held  a  large  amount  of  stock  in 
the  new  combinations  were  anxious  to  sell  their  stocks  to  the  pubUc, 
and  they  knew  that  if  a  competitive  war  broke  out  in  the  steel  busi- 
ness the  value  of  these  stocks  would  fall  and  the  public  would  hesi- 
tate to  buy.  This  furnished  an  added  reason  for  trying  to  harmonize 
the  conflicting  interests. 


366 


READINGS  IN  AMERICAN   DEMOCR.\CY 


leads  to  the 
organization 
of  the 
U.S.  Steel 
Corporation. 


It  was  under  these  circumstances  that  a  meeting  of  the  leading 
men  in  the  steel  industry  was  called,  and  in  1901  under  the  leader- 
ship of  Mr.  J.  P.  Morgan  the  plan  to  consolidate  all  of  these  con- 
cerns and  small  combinations  in  one  gigantic  company  to  be  called 
the  United  States  Steel  Corporation,  with  a  capitalization  of  about 
$1,400,000,000,  was  carried  through.  The  Steel  Corporation  as  then 
organized  owned  149  steel  works  of  various  kinds,  vast  ore,  coal, 
gas,  and  hmestone  properties,  over  1,000  miles  of  railroad,  and  over 
100  vessels  on  the  Great  Lakes.  It  at  that  time  controlled  about 
two-thirds  of  the  country's  total  output  of  steel  ingots,  billets,  rails, 
castings,  nails,  plates,  structural  shapes,  and  sheet  steel,  and  about 
three-quarters  of  the  output  of  wire  rods  and  tin  plate.  .  .  . 


The  concen- 
tration of 
power  due 
to  indus- 
trial inte- 
gration. 


In  1882  a 
number 
of  oil 
companies 

enter  an 
agreement 


to  form  a 
limited 
number  of 
corporations 

to  carry 
on  the  oil 
business. 


158.   A  typical  trust  agreement  ^ 

From  the  standpoint  of  the  public  welfare,  a  significant  element 
in  the  development  of  great  business  concerns  has  been  the  con- 
centration of  power.  An  early  method  of  securing  this  concentra- 
tion of  power  was  for  a  number  of  concerns  to  enter  a  specific  agree- 
ment which  allowed  all  of  their  combined  resources  to  be  directed 
as  a  unit.  The  most  famous  of  agreements  of  this  kind  was  the 
"trust"  device,  first  used  by  the  Standard  Oil  Company,  in  1882. 
Some  of  the  significant  elements  in  this  original  trust  agreement 
are  given  below: 

This  agreement  [is]  made  and  entered  upon  this  second  day  of 
January,  a.d.  1882,  by  and  between  [more  than  a  dozen  oil  companies, 
as  well  as  numerous  designated  individuals.]  .  .  . 

II.  The  parties  hereto  do  covenant  and  agree  to  and  with  each 
other,  each  in  consideration  of  the  mutual  covenants  and  agree- 
ments of  the  others,  as  follows: 

(i)  As  soon  as  practicable  a  corporation  shall  be  formed  in  each 
of  the  following  states,  under  the  laws  thereof,  to-wit:  Ohio,  New 
York,  Pennsylvania  and  New  Jersey;  .  .  . 

(2)  The  purposes  and  powers  of  said  corporations  shall  be  to  mine 
for,  produce,  manufacture,  refine,  and    deal  in  petroleum  and  aU 

'  From  the  United  States  Industrial  Commission,  Preliminary  Report  on  Trusts 
and  Industrial  Combinations.    Washington,  1900.    Vol.  i,  pp.  1221-1225. 


PUBLIC  INTEREST  IN  BUSINESS:  REGULATION       367 

its  products,  and  all  the  materials  used  in  such  business,  and  tran- 
sact other  business  collateral  thereto.  .  .  . 

(7)  All  of  the  property,  real  and  personal,  assets,  and  business  They  are  to 

of  each  and  all  of  the  [combining]  corporations  and  Hmited  part-  transfer 

their  prop- 

nerships  .  .  .  shall  be  transferred  to  and  vested  in  the  said  several  erty  to 

Standard  Oil  Companies.     All  of  the  property,  assets,  and  business  *^^  corpora- 

,  ,    „  ,  tion  in  their 

in  or  of  each  particular  state  shall  be  transferred  to  and  vested  in  state 

the  Standard  Oil  Co.   of  that   particular   state.  .  .  . 

(ic)  The  consideration  for  the  transfer  and  conveyance  of  the  and  receive 

money,  property,  and  business   aforesaid   to   each   or   any  of   the  "^  exchange 

Standard  Oil  Companies  shall  be  stock  of  the  respective  Standard  said  corpo- 

Oil  Company  to  which  said  transfer  or  conveyance  is  made,  equal  ■'^'^ioii- 
at  par  value  to  the  appraised  value  of  the  money,  property,  and  busi- 
ness so  transferred.  .  .  . 

III.   The  trusts  upon  which  said  stocks  shall  be  held,  and  the  The  corn- 
number,  powers,  and  duties  of  said  trustees,   shall  be  as  follows:  ^^^^s  busi- 

ncsscs  to 

(i)  The  number  of  trustees  shall   be  nine.      [Here   foUow  their  be  con- 
names,  the  first  mentioned  being  J.  D.  Rockefeller.]  .  .  .  trolled  by 

nine 

(11)  The  trustees  shall  prepare  certificates,  which  shall  show  the  trustees 

interest  of  each  beneficiary  in  said  trust,   and  deliver  them  to  the  who  shall 

persons  properly  entitled  thereto.    They  shall  be  divided  into  shares  stock ^of^  the 

of  the  par  value  of  fioo  each,  and  shall  be  known  as  "Standard  combined 

Oil  Trust  Certificates, "  and  shall  be  issued  subject  to  all  the  terms  and'iSJur'to 

and  conditions  of  this  agreement.     The  trustees  shall  have  power  the  stock- 

111 

to  agree  upon  and  direct  the  form  and  contents  of  said  certificates,  trust'^'cer- 

and    the    mode    in    which    they    shall    be    signed,    attested,    and  tificates 
transferred.  ... 

(14)  It  shall  be  the  duty  of  said  trustees  to  receive  and  safely  to  on  which 

keep  all  interest  and  dividends  declared  and  paid  upon  any  of  the  the  stock- 

.  "^  holders  are 

said  bonds,  stocks,  and  moneys  held  by  them  in  trust,  and  to  dis-  to  receive 

tribute  all  moneys  received  from  such  sources  or  from  sales  of  trust  dividends. 

property  or  otherwise  by  declaring  and  paying  dividends  upon  the 

Standard  Trust  Certificates  as   funds   accumulate,  which   in   their 

judgment  are  not  needed  for  the  uses  and  expenses  of  said  trust.  .  .  . 

(15)  It  shall  be  the  duty  of  said  trustees  to  exercise  general  su- 
pervision over  the  affairs  of  said  several  Standard  Oil  Companies, 
and  as  far  as  practicable  over  the  other  companies  or  partnerships, 


The  trustees 
to  manage 
and  direct 
the  com- 
bined busi- 
nesses. 


368 


READINGS  IN  AJMERICAN  DEMOCRACY 


any  portion  of  whose  stock  is  held  in  said  trust.  It  shall  be  their 
duty  as  stockholders  of  said  companies  to  elect  as  directors  and 
officers  thereof  faithful  and  competent  men.  They  may  elect  them- 
selves to  such  positions  as  they  see  fit  so  to  do,  and  shall  endeavor 
to  have  the  affairs  of  said  companies  managed  and  directed  in  the 
manner  they  may  deem  most  conducive  to  the  best  interests  to  the 
holders  of  said  trust  certificates.  .  .  . 


A  chief  ob- 
jection to 
the  trust  is 
that  it 
tends  to 
abuse  its 
power. 


The  charge 
agamst  the 
National 
Cash  Reg- 
ister Com- 
pany: 

Attempts  to 
learn  the 
secrets  of 
competitors 


159.   Abuse  of  power  by  the  trust  ^ 

Economists  are  accustomed  to  say  that  up  to  a  certain  point  in- 
tegration in  industry  may  result  in  numerous  economies.  When 
businesses  combine,  some  of  the  wastes  of  competition  are  avoided. 
Often  combination  means  more  effective  management.  Up  to  a 
certain  point,  too,  it  is  often  true  that  the  product  can  be  manufac- 
tured more  cheaply.  The  trouble,  however,  has  been  that  very  often 
these  advantages  have  been  outweighed,  from  the  point  of  view  of  the 
pubhc  at  least,  by  certain  evils  of  trust  development.  Of  these  evils, 
the  chief  is  the  tendency  of  the  trust  to  abuse  its  power.  For  example, 
the  trust  may  attempt  to  further  its  own  interests  at  the  expense 
of  competing  businesses,  and  at  the  expense  of  the  public.  Illustra- 
tive of  the  evil  practices  of  the  trust  are  the  following  extracts  from 
the  indictment  of  the  National  Cash  Register  Company  in  the  case 
of  United  States  v.  Patterson  et  al.: 

[The  program  of  the  National  Cash  Register  Company  included 
the  following  items]: 

1.  The  inducing,  hiring,  and  bribing  of  employees  and  ex-employees 
of  [competitors]  .  .  .  deceitfully  and  wrongfully  to  disclose  to  said 
the  National  Cash  Register  Company  the  secrets  of  the  business 
of  the  concerns  by  which  they  were  respectively  employed,  or  had 
been  employed.  .  .  . 

2.  The  inducing,  hiring,  and  bribing  of  employees  of  carters, 
truckmen,  express  companies,  railroad  common  carriers,  telegraph 
companies,  and  telephone  companies,  wrongfully  and  unlawfully 
to  disclose  to  said  the  National  Cash  Register  Company  the  se- 


^  From  the  United  States  v.  Patterson  et  al.    District  Court,  S.  D.,  Ohio.    W.  D. 

Jime  26,  1912. 


PUBLIC  INTEREST  IN  BUSINESS:   REGULATION       369 

crets  ,  .  .  pertaining  to   the  carriage   and   transportation   of   cash 
registers  for  such  competitors.  .  .  . 

3.  The  instructing  and  requiring  all  sales  agents  of  said  the 
National  Cash  Register  Company  to^  ascertain  and  report  ...  all 
facts  and  details  pertaining  to  the  business  and  activities  of  said 
competitors.  .  .  . 

4.  The  using  of  the  influence  of  said  the  National  Cash  Register   and  to  in- 

Company  and  of  its  agents  \\'ith,  and  the  making  of  unwarranted   Ju^e  the 

credit  of 
and  false  statements  to,  banking  and  other  institutions,  to  injure   those  com- 

ihe  credit  of  said  competitors  and  prevent  their  securing  accommoda-   P^^^'tors. 

tions  of  money,  credit,  and  supplies  convenient  and  necessary  to 

the  carrying  on  of  their  business; 

5.  The  instructing  and  requiring  of  all  sales  agents  of  said  the   Interference 
National  Cash  Register  Company  to  interfere  with,  obstruct,  and   ^'^f^  ^^ 

S3.ICS  01 

prevent  in  every  way  possible  sales  of  such  competitive  cash  reg-   competitors, 
isters  by  said  competitors.   ... 

6.  The  making,  in  some  cases,  by  said  the  National  Cash  Regis-    Use  of 
ter  Company,  to  such  competitors,  and  to  purchasers  and  prospec-    ^^^^^s, 
tfve  purchasers  of    such  competitive  cash  registers,   of  threats  to 

begin  suits  in  the  courts  againts  them  for  infringing  and  for  hav- 
ing infringed  its  patent  rights  pertaining  to  'ts  genuine  cash  reg- 
isters, when  as  said  defendants  each  well  knew,  no  such  patent 
rights  existed,  and  no  such  suits  were  contemplated  or  would  really 
be  begun,  and  such  threats  were  made  merely  to  harass  such  competi- 
tors, purchasers,  and  prospective  purchasers.   .  .  . 

8.  The  organizing  of  cash-register  manufacturing  concerns  and   and  bogus 
cash-register  sales  concerns,  and  the  maintaining  of  them,  ostensibly   ^^o^^^^^s. 
as  competitors  of  said  the  National  Cash  Register  Company,  but 

in  fact  as  convenient  instruments  for  use  in  gaining  the  confidence 
and  obtaining  the  secrets  of  said  real  competitors  of  said  the  National 
Cash  Register  Company.  .  .  . 

9.  The  inducing,  by  offers  of  much  greater  compensation  than   Winning 
they  were  receiving  from  said  competitors,  respectively,  agents  and   ^"^'^^  ^^^ 
servants  of  said  competitors  ...  to  leave  the  employment  of  said   of  competi- 
competitors  ...  to  enter  the  employment   of  .  .  .  said  National   ^°^^- 
Cash  Register  Company;    and  this  principally  for  the  purpose  of 
embarrassing  said  competitors.  .  .  . 


370 


READINGS  IN  AAIERICAN  DEMOCRACY 


Attacking 
the  patent 
rights  of 
competitors. 


Encourage- 
ment of 
other  tac- 
tics of  an 
unfair  and 
unlawful 
nature. 


10.  By  applying  ...  for  letters  patent  of  the  United  Stat 
in  some  cases  upon  the  cash  registers  of  said  competitors  and  in  otl 
cases  upon  improvements  upon  such  competitive  cash  registe 
and  this  merely  for  the  purpose  of  harassing  such  competitors 
interference  proceedings  and  suits  and  threats  to  institute  su 
proceedings  and  suits;    and 

11.  The  using  of,  or  originating  and  using  of,  and  the  instructi 
and  requiring  of  such  agents  and  sales  agents  of  said  the  Natioi 
Cash  Register  Company  to  use  or  to  originate  and  use,  such  otl 
unfair,  oppressive,  tortious,  illegal,  and  unla\\-fid  means,  unlawful 
wrongfully,  and  irresistibly  excluding  other  concerns  beside  s; 
the  National  Cash  Register  Company  from  engaging  in  said  int 
state  trade  and  commerce,  as  might  at  any  time  become, 
appear  .  .  .   convenient.  .  .  . 


Evils  of 
trust  devel- 
opment give 
rise  to  anti- 
trust legis- 
lation. 


In  i8go  the 
Sherman 
Anti-trust 
Act  de- 
clared 
illegal  all 
combina- 
tions in 
restraint  of 
trade. 


160.   The  Sherman  Anti-tnist  Act  of  1890  ^ 

Though  it  did  not  begin  until  about  1880,  trust  developm 
proceeded  so  rapidly  that  within  a  few  years  the  trust  device  1 
been  adopted  in  a  considerable  number  of  important  industr 
Very  soon  the  unfair  practices  of  the  trusts  gave  rise  to  a  demt 
for  restrictive  legislation.  One  result  of  this  demand  was  the  ene 
ment  by  Congress  of  the  Sherman  Anti-trust  Act  of  1890.  Practice 
the  fuU  text  of  this  important  measure  follows: 

Be  it  enacted  by  the  Senate  and  House  of  Representatives  of  the  Un. 
States  of  America  in  Congress  assembled, 

Sec.  I.   Every  contract,  combination  in  the  form  of  trust  or  otl 
wise,  or  conspiracy,  in  restraint  of  trade  or  commerce  among 
several  states,  or  with  foreign  nations,  is  hereby  declared  to  be  illei 
Every  person  who  shaU  make  any  such  contract  or  engage  in  ; 
such  combination  or  conspiracy  shall  be  deemed  guilty  of  a  r  ■ 
demeanor,  and,  on  conviction  thereof,  shall  be  pimished  by 
not  exceeding  five  thousand  doUars.  or  by  imprisonment  not  exce  - 
ing  one  year,  or  by  both  said  punishments,  in  the  discretion  of 
court. 

1  From  the  Statutes  of  the  United  StaUs,  The  Federal  Anti-trust  La'd).  Julj 
1890. 


PUBLIC  INTEREST  IN  BUSINESS:   REGULATION       371 

Sec.  2.  Every  person  who  shall  monopolize,  or  attempt  to  mo  nop-   Monopoly 

5ze,  or  combine  or  conspire  with  any  other  person  or  persons,  to  ^^''^^i'^'^^i^- 

lOnopoUze  any  part  of  the  trade  or  commerce  among  the  several 

ates,  or  with  foreign  nations,  shall  be  deemed  guilty  of  a  misde- 

eanor,  and  on  conviction  thereof,  shall  be  punished  by  fine  not 

:ceeding  five  thousand  dollars,  or  by  imprisonment  not  exceeding 

le  year,  or  by  both  said  punishments,  in  the  discretion  of  the  court. 

Sec.  3.    Every  contract,  combination  in  form  of  trust  or  other-   Geographi- 

se,  or  conspiracy,  in  restraint  of  trade  or  commerce  in  any  ter-   ^||   ^'^^P^ 

ory  of  the  United  States  or  of  the  District  of  Columbia,  or  in 

itraint  of  trade  or  commerce  between  any  such  territory  and  an- 

her,  or  between  any  such  territory  or  territories  and  any  state 

states  or  the  District  of  Columbia,  or  with   foreign  nations,  or 

1  tween  the  District  of  Columbia  and  any  state  or  states  or  foreign 

jltions,  is  hereby  declared  illegal.     Every  person  who  shall  make 

ey  such  contract  or  engage  in  any  such  combination  or  conspiracy 

f'lll  be  deemed  guilty  of  a  misdemeanor,  and,  on  conviction  thereof, 

s  ill  be  punished  by  fine  not  exceeding  five  thousand  dollars,  or 

I  imprisonment  not  exceeding  one  year,  or  by  both  said  punish- 

rnts,  in  the  discretion  of  the  court. 

15ec.  4.  The  several  circuit  courts  of  the  United  States  are  hereby  Relation  of 

irested  with  jurisdiction  to  prevent  and  restrain  violations  of  this   I  e  courts 
■"  ^  to  the  exe- 

a  ;  and  it  shall  be  the  duty  of  the  several  district  attorneys  of  the   cution  of 
I  ited  States,  in  their  respective  districts,  under  the  direction  of   *•  '^  ^^*' 
ti  Attorney  General,  to  institute  proceedings  in  equity  to  prevent 
a  .  restrain  such  violations.  .  .  . 

EC.  5.  Whenever  it  shall  appear  to  the  court  before  which  any 
pceeding  under  section  four  of  this  act  may  be  pending,  that  the 
ei;S  of  justice  require  that  other  parties  should  be  brought  before 
tl  court,  the  court  may  cause  them  to  be  summoned,  whether  they 
relie  in  the  district  in  which  the  court  is  held  or  not;  and  subpoenas 
tojhat  end  may  be  served  in  any  district  by  the  marshal  thereof. 

EC.  6.  Any  property  owned  under  any  contract  or  by  any  com-   Provision 
bi  .tion,  or  pursuant   to   any  conspiracy   (and  being  the  subject    °J  ^  ^^  ^  ' 
th  eof)  mentioned  in  section  one  of  this  act,  and  being  in  the  course   property, 
of  -ansportation  from  one  state  to  another,  or  to  a  foreign  country, 
shl  be  forfeited  to  the  United  States,  and  may  be  seized  and  con- 


372 


READINGS  IN  AMERICAN  DEMOCRACY 


Legal  rights 
of  injured 
parties. 


The  words 

"person" 

and 

"persons" 

defined. 


demned  by  like  proceedings  as  those  provided  by  law  for  the  for- 
feiture, seizure,  and  condemnation  of  property  imported  into  the 
United  States  contrary  to  law. 

Sec.  7.  Any  person  who  shall  be  injured  in  his  business  or  property 
by  any  other  person  or  corporation,  by  reason  of  anything  forbidden 
or  declared  to  be  unlawful  by  this  act,  may  sue  therefor  in  any  circuit 
court  of  the  United  States  in  the  district  in  which  the  defendant 
resides  or  is  found,  without  respect  to  the  amount  in  controversy, 
and  shall  recover  threefold  the  damages  by  him  sustained,  and  the 
costs  of  suit,  including  a  reasonable  attorney's  fee. 

Sec.  8.  That  the  word  "person"  or  "persons,"  wherever  used 
in  this  act,  shall  be  deemed  to  include  corporations  and  associations 
existing  under  or  authorized  by  the  laws  of  either  the  United  States, 
the  laws  of  any  of  the  territories,  the  laws  of  any  state,  or  the  laws 
of  any  foreign  country. 


Ineffective 
for  twenty 
years,  the 
Sherman 
Act  proves 
its  strength 
in  1911. 


The  Ameri- 
can Tobacco 
Company 
ordered  dis- 
solved in 
igii. 
Two  pos- 
ible  reme- 
dies are  re- 
jected by 
the  Supreme 
Court. 


161,   A  great  trust  ordered  dissolved  ^ 

The  Sherman  Act  was  designed  to  curb  the  illegal  activities  of 
the  trusts,  yet  during  the  first  twenty  years  of  its  existence,  the  act 
was  largely  a  failure.  Occasionally  the  law  revealed  elements  of 
strength,  but  it  was  not  untU  191 1  that  it  really  proved  to  be  an  ef- 
fective weapon  against  monopoly.  In  that  year  the  Supreme  Court 
of  the  United  States  ordered  dissolved  two  of  the  greatest  trusts 
in  the  country,  the  Standard  Oil  Company  and  the  American  Tobacco 
Company.  In  its  decision  in  the  case  against  the  latter  trust  the 
Court  concluded  as  follows: 

[In  the  disposal  of  this  case,]  we  might  at  once  resort  to  one  or 
the  other  of  two  general  remedies  — 

(a)  the  allowance  of  a  permanent  injunction  restraining  the  com- 
bination [and  its  constituent  parts]  from  continuing  to  engage  in 
interstate  commerce  untU  the  illegal  situation  could  be  cured  ...  or 

(b)  to  direct  the  appointment  of  a  receiver  to  take  charge  of  the 
assets  and  property  in  this  country  of  the  combination  in  all  its 
ramifications  for  the  purpose  of  preventing  a  continued  violation 
of  the  law,  and  thus  working  out  by  a  sale  of  the  property  of  the 

'  From  the  Supreme  Court  of  the  United  States,  Decision  in  the  case  of  The 
United  States,  v.  The  American  Tobacco  Company  and  others.  191 1. 


PUBLIC  INTEREST  IN  BUSINESS:   REGULATION       373 


combination  or  otherwise  a  condition  of  things  which  would  not  be 
repugnant  to  the  prohibitions  of  the  act. 

But  having  regard  to  the  principles  which  we  have  said  must  control 
our  action,  we  do  not  think  we  can  now  direct  the  immediate  applica- 
tion of  either  of  these  remedies.  We  so  consider  as  to  the  first  because 
in  view  of  the  extent  of  the  combination,  the  vast  field  which  it  covers, 
the  all-embracing  character  of  its  activities  concerning  tobacco  and 
its  products,  to  at  once  stay  the  movement  in  interstate  commerce 
of  the  products  which  the  combination  or  its  cooperating  forces 
produce  or  control  might  inflict  infinite  injury  upon  the  public  by 
leading  to  a  stoppage  of  supply  and  a  great  enhancement  of  prices. 
The  second,  because  the  extensive  power  which  would  resiilt  from 
at  once  resorting  to  a  receivership  might  not  only  do  grievous  injury 
to  the  public,  but  also  cause  widespread  and  perhaps  irreparable 
loss  to  many  innocent  people. 

Under  these  circumstances,  taking  into  mind  the  complexity  of 
the  situation  in  all  of  its  aspects,  and  giving  weight  to  the  many- 
sided  considerations  which  must  control  our  judgment,  we  think, 
so  far  as  the  permanent  relief  to  be  awarded  is  concerned,  we  should 
decree  as  follows: 

First.  That  the  combination  in  and  of  itself,  as  well  as  each  and 
all  of  the  elements  composing  it,  whether  corporate  or  individual, 
whether  considered  collectively  or  separately,  be  decreed  to  be  in 
restraint  of  trade  and  an  attempt  to  monopolize  and  a  monopoKza- 
tion  within  the  first  and  second  sections  of  the  anti-trust  act. 

Second.  That  the  court  below,  in  order  to  give  effective  force  to 
our  decree  in  this  regard,  be  directed  to  hear  the  parties  ...  for 
the  purpose  of  ascertaining  and  determining  upon  some  plan  or 
method  of  dissolving  the  combination  and  of  re-creating,  out  of 
the  elements  now  composing  it,  a  new  condition  which  shall  be 
honestly  in  harmony  with  and  not  repugnant  to  the  law. 

Third.  That  for  the  accompHshment  of  these  purposes,  taking 
into  view  the  difficulty  of  the  situation,  a  period  of  six  months  is 
allowed  from  the  receipt  of  our  mandate,  with  leave,  however,  in 
the  event,  in  the  judgment  of  the  court  below,  the  necessities  of 
the  situation  require,  to  extend  such  period  to  a  further  time  not 
to  exceed  60  days. 


Reasons  for 
rejecting 
these  pro- 
posed reme- 
dies. 


The   decision 
of  the 
Court : 


The  Amer- 
ican To- 
bacco Com- 
pany violates 
the  act  of 
1890. 

The  trust 
to  be  dis- 
solved and 
reorganized 
in  accordance 
with  law. 


Time  period 
within  which 
this  is  to 
be  accom- 
plished. 


374 


READINGS  IN  AMERICAN  DEMOCRACY 


The  remedy 
in  case 
dissolution 
does  not 
take  place 
within  this 
period. 


Conclusion. 


Fourth.  That  in  the  event,  before  the  expiration  of  the  period 
thus  fixed,  a  condition  of  disintegration  in  harmony  with  the  law 
is  not  brought  about,  ...  it  shall  be  the  duty  of  the  court,  either 
by  way  of  an  injunction  restraining  the  movement  of  the  products 
of  the  combination  in  the  channels  of  interstate  or  foreign  commerce, 
or  by  the  appointment  of  a  receiver,  to  give  effect  to  the  require- 
ments of  the   statute. 

Pending  the  bringing  about  of  the  result  just  stated,  each  and 
all  of  the  defendants,  individuals  as  well  as  corporations,  should 
be  restrained  from  doing  any  act  which  might  further  extend  or 
enlarge  the  power  of  the  combination,  by  any  means  or  device  what- 
soever. In  view  of  the  considerations  we  have  stated,  we  leave  the 
matter  to  the  court  below  to  work  out  a  comphance  with  the  law 
without  unnecessary  injury  to  the  pubUc  or  the  rights  of  private 
property.  .  .  . 

And  it  is  so  ordered. 


Additional 
anti-trust 
legislation 
in  1914. 


A  Federal 
Trade  Com- 
mission 
created. 


162.    Significance  of  the  Federal  Trade  Commission  1 

Notwithstanding  the  strength  shown  by  the  Sherman  Act  in 
effecting  the  dissolution  of  the  Standard  Oil  Company  and  the 
American  Tobacco  Company  in  1911,  there  continued  to  be  agita- 
tion for  additional  legislation.  It  was  thought  that  our  anti-trust 
legislation  should  be  more  specific,  and  that  it  should  deal  more 
effectively  with  the  early  stages  of  monopoly.  In  the  effort  to  secure 
these  ends.  Congress  in  1914  passed  two  additional  anti-trust  laws, 
the  Clayton  law  and  the  Federal  Trade  Commission  law.  Of  these 
two  acts,  the  latter  is  probably  the  more  significant.  The  following 
are  excerpts  from  the  Federal  Trade  Commission  Act: 

Sec.  I.  Be  it  enacted  by  the  Senate  and  the  House  of  Representa- 
tives of  the  United  States  of  America  in  Congress  assembled, 

That  a  commission  is  hereby  created  and  established,  to  be  known 
as  the  Federal  Trade  Commission  .  .  .  which  shall  be  composed 
of  five  commissioners,  who  shall  be  appointed  by  the  President, 
by  and  with  the  advice  and  consent  of  the  Senate.    Not  more  than 

1  From  the  Statutes  oj  the  United  States,  Federal  Trade  Commission  Law, 
enacted,  1014. 


PUBLIC  INTEREST  IN  BUSINESS:   REGULATION       375 

three  of  the  commissioners  shall  be  members  of  the  same  poHtical 
party.  .  .  . 

Sec.  5.  .  .  .  The  commission  is  hereby  empowered  and  directed  to  It  is  em- 
prevent  persons,  partnerships,  or  corporations,  except  banks,  and   P^*^''^^  *° 
common  carriers  subject  to  the  acts  to    regulate   commerce,  from   fair  methods 
using  unfair  methods  of  competition  in  commerce.  ^.  ^"°iP^*^^' 

Whenever  the  commission  shall  have  reason  to  beheve  that  any 

such  person,  partnership,  or  corporation  has  been  or  is  using  any  un-   Procedure 

fair  method  of  competition  in  commerce,  and  if  it  shall  appear  to   °ffo''^.th5 

^  ...  Lonimission. 

the  commission  that  a  proceeding  by  it  in  respect  thereof  would  be 

to  the  interest  of  the  public,  it  shall  issue  and  serve  upon  such  person, 

partnership,  or  corporation  a  complaint  stating  its  charges  in  that 

respect,  and  containing  a  notice  of  a  hearing  upon  a  day  and  at  a 

place  therein  fixed  at  least  thirty   days  after  the  service  of  said 

complaint. 

The  person,  partnership,  or  corporation  so  complained  of  shall 
have  the  right  to  appear  .  .  .  and  show  cause  why  an  order  should 
not  be  entered  by  the  commission  requiring  such  person,  partnership, 
or  corporation  to  cease  and  desist  from  the  violation  of  the  law 
so  charged.  ...  If  upon  such  hearing  the  commission  shall  be  of 
the  opinion  that  the  method  of  competition  in  question  is  prohib- 
ited by  this  act,  it  ...  shall  issue  and  cause  to  be  served  on  such 
person,  partnership,  or  corporation  an  order  requiring  [them]  to 
cease  and  desist  from  using  such  method  of  competition.  .  .  . 

Sec.   6.  That   the   commission   shall   also   have  power  — 

(a)  To  gather  and  compile  information  concerning,  and  to  investi-   investigat- 
gate  from  time  to  time  the  organization,  business,  conduct,  practices,   "^^  power 
and  management  of  any  corporation  engaged  in  commerce,  (except-   rations. 
ing  banks  and  common  carriers  subject  to  the  act  to  regulate  com- 
merce), and  its  relation  to  other  corporations  and  to  individuals, 
associations,  and  partnerships. 

(b)  To   require,    by   general   or   special   orders,   [such]   corpora-   Power  to 

tions  ...  to  file  with  the  commission  in  such  form  as  the  commis-    require 

reports. 

sion  may  prescribe  annual  or  special,  or  both  annual  and  special, 

reports  or  answers  in  writing  to  specific  questions,  furnishing  to  the 

commission  such  information  as  it  may  require  as  to  the  organiza- 

j  tion,   business,   conduct,   practices,   management,   and   relation   to 


376 


READINGS  IN  AMERICAN  DEMOCRACY 


Power  to 
investigate 
the  carry- 
ing out  of 
anti-trust 
decrees. 


Power  to 

recommend 
readjust- 
ment of 
business. 


Power  to 
make  reports 
to    Congress. 


Other    corporations,    partnerships,    and    individuals    of    the    fsaid^ 
corporations.  ... 

(c)  Whenever  a  final  decree  has  been  entered  against  any  defend- 
ant corporation  in  any  suit  brought  by  the  United  States  to  prevent 
and  restrain  any  violation  of  the  anti-trust  acts,  to  make  investiga- 
tion, upon  its  own  initiative,  of  the  manner  in  which  the  decree  has 
been  or  is  being  carried  out,  and  upon  the  apphcation  of  the  Attorney 
General  it  shaU  be  its  duty  to  make  such  investigation.  .  ,  , 

(d)  Upon  the  direction  of  the  President  or  either  house  of  Congress 
[the  commission  shaU  have  power]  to  investigate  and  report  the 
facts  relating  to  any  alleged  violations  of  the  anti-trust  acts  by  any 
corporation. 

(e)  Upon  the  application  of  the  Attorney  General  [the  commis- 
sion shall  have  power]  to  investigate  and  make  recommendations 
for  the  readjustment  of  the  business  of  any  corporation  alleged  to 
be  violating  the  anti-trust  acts  in  order  that  the  corporation  may 
thereafter  maintain  its  organization,  management,  and  conduct  of 
business  in  accordance  with  law. 

(/)  [The  commission  shall  have  the  power]  to  make  public  from 
time  to  time  such  portions  of  the  information  obtained  by  it  here- 
imder,  except  trade  secrets  and  names  of  customers,  as  it  shall  deem 
expedient  in  the  public  interest;  and  to  make  annual  and  special 
reports  to  the  Congress,  and  to  submit  therewith  recommendations 
for  additional  legislation;  and  to  provide  for  the  pubHcation  of 
its  reports  and  decisions  in  such  form  and  manner  as  may  be  best 
adapted  for  pubUc  information  and  use.  .  .  . 


Questions  on  the  foregoing  Readings 

1.  What  is  at  present  the  dominant  form  of  business  organization? 

2.  At  what  time  did  Andrew  Carnegie  secure  an  interest  in  the  busi- 

ness which  later  developed  into  the  United  States  Steel  Cor- 
poration? 

3.  What  step   toward  integration   was  taken  in   the  iron  and  steel 

business  in  1881? 

4.  What  was  the  amount  of  capital  invested  in  the  Carnegie  Steel 

Company  in  1892? 

5.  What  were  the  circumstances  which  led  to  the  formation  of  the 

United  States  Steel  Corporation  in  igoi? 


PUBLIC  INTEREST  IN   BUSINESS:   REGULATION       377 

6.  What  industry  first  made  use  of  the  "  trust  "  device? 

7.  What  were  to   be  the   purposes   and   powers  of   the   corporations 

formed  by  the  adoption  of  this  device? 

8.  How  was  the  business  of  the  combining   concerns  to  be  controlled? 

9.  Explain  the  relation    between  stock  and  trust  certificates  as  pro- 

vided for  in  the  trust  agreement. 

10.  What  is  the  great  objection  to  the  trust? 

11.  Outline    the    charges     against    the    National    Cash    Register    with 

respect  to  the  attempts  of   this  company  to  learn  the  secrets  of 
its  competitors. 

12.  How  did  agents  of  this    company  attempt  to  injure  the  credit  of 

its  competitors? 

13.  What  use  did  this  company  make  of  bogus  concerns? 

14.  What   was   the   chief  purpose   of   these   and  other  unfair   tactics 

adopted  by  the  company? 

15.  Why  was  the  Sherman  Anti-trust  Act  of  1890  passed  by  Congress? 

16.  What  did  this  law  say  concerning  combinations  in  restraint  of 

trade? 

17.  What  part  were  the  circuit  courts  of  the  United  States  to  play  in 

the  execution  of  the  law? 

18.  What   redress  was  allowed  persons  who  had  sustained   injury  as 

the  result  of  trust  activity? 

19.  In  what  year  did  the   Sherman  Act  prove   markedly  effective? 

20.  What  two  great  combinations  were  ordered  dissolved  in   191 1? 

21.  What,  in  brief,   was  the  decision  of   the   Supreme   Court  in  the 

American  Tobacco  Company  case? 

22.  Why  did  there  continue  to  be  agitation  for  additional  anti-trust 

legislation  after  191 1? 

23.  What  two  acts  were  enacted  in  19 14? 

24.  Outline   the   powers   which   the   Federal   Trade   Commission   may 

exercise  over  business. 

25.  What  additional  powers  may  be  exercised  by  the  Commission? 


CHAPTER   XX\1II 


Public  util- 
ities classi- 
fied. 


Unique   posi- 
tion of  the 
railroads. 


PUBLIC   INTEREST   IN   BUSINESS:    OWNERSHIP 
163.    Social  importance  of  public  utilities  ^ 

In  so  far  as  they  affect  the  well-being  of  the  community,  all  busi- 
nesses are  of  social  importance.  However,  some  industries  are  more 
immediately  and  intimately  connected  wdth  the  welfare  of  the  public 
than  are  other  types  of  business.  Of  particular  importance  to  the 
pubHc  is  a  group  of  industries  which  includes:  (a)  local  utihties, 
including  such  industries  as  street  railways,  gas  and  electric  Hght 
works,  water  works,  and  the  telephone;  and  (b)  steam  railroads.  The 
social  significance  of  these  pubhc  utUities  was  affirmed  in  the  1886 
report  of  the  Senate  Select  Committee  on  Interstate  Commerce. 
The  report  of  this  committee  was  concerned  chiefly  with  steam  rail- 
roads, but  the  following  passages  are  significant  in  connection  with 
other  utilities  as  well: 

As  a  common  carrier  and  as  the  privileged  manager  of  the  business 
of  transportation  upon  a  pubUc  highway,  the  relations  and  obHga- 
tions  of  the  railroad  to  the  community  and  to  the  governmental 
authority  are  essentially  different  from  those  of  the  ordinary  cor- 
poration which  does  not  enjoy  similar  exclusive  privileges  or  perform 
a  pubhc  function.  In  the  very  nature  of  these  distinctions  and  in 
the  peculiar  relations  they  occasion  are  to  be  found  the  reasons  which 
justify  and  render  necessary  the  legislative  regulation  of  the  rail- 
road corporations  engaged  in  the  business  of  transportation  for  the 
pubhc  convenience.  .  .  . 

The  pubhc  nature  of  these  corporations  has  been  uniformly  main- 
tained by  the  courts  and  legislatures  of  the  several  states.  In  Massa- 
chusetts, for  example,  as  Judge  Russell,  the  chairman  of  the  rail- 

'  From  the  Reports  of  Committees  of  the  Senate  of  the  United  States  for  the 
First  Session  of  the  Forty-ninth  Congress,  1885-1886.  Report  of  the  Committee  on 
Interstate  Commerce.    Part  i;  pp.  40-42. 

378 


PUBLIC  INTEREST  IN   BUSINESS:  OWNERSHIP        379 

road  commission,  stated  to  the  committee:   "Our  supreme  court  has   Railroad 

always  held  very  strictly  the  doctrine  that   railroad  corporations   corpora- 

,  ,.  .  1       1   1     r        1  .  tions  are 

are  public  corporations,  created  solely  for  the  good  of  the  public,  and   public  cor- 

that  they  are  to  be  dealt  with  accordingly.    A  great  many  years  ago   Po^aiions. 

Mr.  Choate  said  to  the  legislature,  'Railroads  are  made  for  the  people 

and  not  the  people  for  the  railroads;'  and  that  idea  has  been  adopted 

by  the  supreme  court  in  this  state.  ..." 

These  principles  are  well  settled,  and  since  the  decisions  by  the   Additional 

United  States  Supreme  Court  in  the  "Granger  Cases"  brought  the   '"^^sons  why 

...  the  state 

railroads  to  a  reauzmg  sense  of  their  obligations  they  have  been   has  the 

substantially  conceded.    But  when  we  consider  the  imperial  influence   ^^^^  ^° 
,  .  ,      ,  -   ,  .  f     .    ...       .  .  regulate  the 

which  these  most  mighty  engines  of  civiuzation  can  exercise  upon   railroads. 

the  development,  progress,  and  commerce  of  the  country,  making 
possible  the  ruin  or  prosperity  of  cities,  states,  or  even  larger  areas 
of  our  territory,  ...  it  becomes  evident  that  the  state  possesses 
the  right  to  supervise  and  regulate  the  administration  of  such  im- 
perial power  upon  the  broad  ground  of  pubHc  policy,  in  addition 
to  the  fact  a  railroad  corporation  manages  a  pubhc  highway,  exer- 
cises a  public  function,  and  is  in  the  nature  of  a  monopoly. 
The  extent  of  the  obligations  of  the  railroad  to  the  state  and  of   Obligations 

the  state  to  the  railroad  is  well  expressed  by  the  railroad  commis-   °^  ^^^  ^^'^' 

road  to 
sioners  of  New  York  Las  follows^:    "A  common  carrier  thus  created   the  state, 

becomes  at  common  law  a  quasi  public  servant,  bound,  as  the  price 

of  its  privileges  conferred,  to  carry  all  persons  and  property  offered 

to  it  for  a  just  and  reasonable  compensation,  and  with  due  regard 

to  pubUc  safety  and  convenience. 

"It  is  the  right  and  duty  of  the  state  ...  to  see  that  the  citizen   and  obliga- 

has  service  to  which  he  is  thus  entitled,  to  prevent  railroads  from   '^'°"*  °^  *-^^ 

'^  state  to  the 

assuming  rights  and  privileges  not  granted,  to  compel  the  correction  railroad. 
of  abuses,  and  to  require  the  performance  of  duties  assumed.  No 
less  has  the  railroad  at  least  a  we  11- recognized  equitable  right  to  in- 
sist that  the  state  shall  guard  its  property;  that  it  shall  be  protected 
in  the  exercise  of  its  chartered  privileges,  and  that  subsequent  legis- 
lation shall  not  exceed  the  limits  above  stated."  .  .  . 


38o 


READINGS  IN  AMERICAN  DEMOCRACY 


Causes  of 
the  move- 
ment toward 
municipal 
ownership" 
of  local 
utilities. 


Extent  of 
municipal 
ownership 
of 


water  works 


electric 


and  gas 
light  plants, 


164.   Extent  of  municipal  ownership  ^ 

Confining  our  present  attention  to  those  pubhc  utiHties  which  are 
local  in  character,  i.e.  street  railways,  gas  and  electric  hght  works, 
and  similar  industries,  it  should  be  noted  that  two  factors  have  stimu- 
lated the  movement  for  pubhc  ownership  of  these  utiHties.  In  the 
first  place,  such  industries  are  natural  monopohes,  and  tend  by  their 
very  nature  to  integrate  and  combine.  In  the  second  place,  the 
social  importance  of  these  utilities  renders  dangerous  their  natural 
tendency  toward  monopoly  conditions.  The  result  is  a  movement 
toward  the  municipal  ownership  of  local  utilities.  The  extent  of  this 
movement  in  191 7  is  described  by  Mr.  Carl  D.  Thompson  in  the 
following  passage: 

...  At  the  beginning  of  the  last  century,  there  were  16  water 
plants  in  the  United  States,  only  one  of  them  municipally  owned. 
By  the  close  of  the  century  there  were  perhaps  3500  plants,  more 
than  half  of  which  were  pubHcly  owned  and  200  of  which  had  changed 
from  private  to  pubhc  ownership.  Practically  every  one  of  the  larger 
cities  owns  its  water  plants,  the  only  exception  being  San  Francisco. 
And  of  all  the  cities  of  the  United  States  of  30,000  population  and 
over,  there  are  150  municipal  to  50  private  plants,  or  three  public 
to  one  private.  .  .  . 

A  similarly  rapid  growth  has  taken  place  in  electric  lighting. 
The  first  municipal  lighting  plant  was  estabUshed  in  188 1.  At  that 
time  there  were  seven  private  plants.  From  that  time  forward 
the  number  of  municipal  plants  increased  rapidly,  until  by  191 2 
there  were  1562  municipal  plants.  Moreover,  the  percentage  of 
increase  of  municipal  plants  has  been  much  greater  during  the  ten 
years  ending  with  1912  than  that  of  private  plants.  .  .  .  Moreover, 
while  there  have  been  13  plants  that  have  changed  from  public  to 
private  ownership,  there  have  been  170  plants  that  have  changed 
from  private  to  pubhc  ownership.  .  .  . 

The  development  of  municipal  ownership  in  the  field  of  gas 
production  has  been  less  rapid.  And  the  reasons  are  obvious.  The 
development  of  electricity  as  a  mode  of  lighting  is  more   practical 

1  From  Carl  D.  Thompson,  Municipal  Ownership.  B.  W.  Huebsch,  New  York, 
1917;  pp.  1-6. 


PUBLIC  INTEREST  IN  BUSINESS:   OWNERSHIP        381 

and  convenient  for  municipal  purposes,  and  besides  is  better  suited 
to  sniall  cities  where  municipal  ownership  in  lighting  has  had  its 
chief  development.  .  .  .  However,  there  has  been  considerable  de- 
velopment even  in  this  direction.  There  were  only  nine  municipal 
gas  plants  in  the  United  States  in  1890,  and  only  15  in  1899.  By 
1907  there  were  25  in  the  United  States  and  10  in  Canada.  Com- 
paring this  with  the  growth  of  the  private  plants,  the  report  of  the 
Civic  Federation  finds  that  the  mmiber  of  private  plants  has  grown 
about  48  per  cent,  and  the  number  of  municipal  plants  67  per  cent, 
in  six  years. 

The  first  city  in  the  United  States  to  undertake  the  municipal    and  street 
o\\Tiership  of  its  street  car  Unes  was  Monroe,  La.      That  city  took   ""^"^'^ys- 
over  its  Unes  about  15  years  ago  and  reports  indicate  that  the  lines 
have  been  making  a  surplus  of  over  $16,000  per  year  in  recent  years. 

St.  Louis,  Mo.,  has  operated  a  short  electric  line  in  connection 
with  its  water  works  plant  for  some  years,  but  it  is  a  very  small  part 
of  the  city's  transportation  system. 

San  Francisco  is  the  first  city  of  any  size  to  really  go  into  the  munici- 
pal ownership  of  its  street  car  lines.  After  nearly  ten  j^ears  of  agita- 
tion, and  after  ten  years  of  struggle  in  repeated  elections,  and  after 
encountering  and  overcoming  all  sorts  of  court  proceedings  and  other 
difficulties,  the  city  finally  started  its  first  municipal  cars  in  December, 
191 2.    Since  then  it  has  steadily  developed  its  system.  .  .  . 

165.   The  future  of  municipal  ownership  ^ 

The  agitation  for  the  municipal  ownership  of  local  utilities  has   Municipal 

been  accompanied  by  a  number  of  investigations  of  the  subject.    Of   P^^^j'f   P 

these  investigations  one  of  the  most  comprehensive  was  that  con-   by  the 

ducted  for  the  National  Civic  Federation  bv  the  Commission  on    Lo™™ission 

on  Public 

Public  0\\Tiership  and  Operation.     This  Commission,  appointed  in   Ow-nership 

1905,  made  a  thorough  study  of  local  utilities  at  home  and  abroad,   ^"^  Opera- 

and  submitted  its  report  in  1907.    With   respect  to  the  prospects 

of  municipal  o^^'nership  in  this  country,  the  commission  offered  the 

following  resolutions  and  recommendations: 

*  From  the  Commission  on  PubUc  Ownership  and  Operation,  Report  to  the 
National  Civic  Federation  on  Municipal  and  Private  Operation  of  Public  Utilities. 
New  York,  1907.    Part  i,  Vol.  i,  pp.  23-25. 


tion. 


382 


READINGS  IN  AMERICAN  DEMOCR.\CY 


Conclusions 
of  the 
Commission: 

Public  util- 
ities cannot 
be  regulated 
by  competi- 
tion. 

Some  utili- 
ties demand 
public 
ownership, 


others  do 
not. 


Provision 
for  future 
purchase. 


Municipali- 
ties should 
be  given 
the  author- 
ity to  build 
and  operate 
public  util- 
ities. 


In   any  case, 
the  public 
should  share 
in  the  profits 
of  the 
utilities. 


First,  we  wish  to  emphasize  the  fact  that  the  public  utilities  studied 
are  so  constituted  that  it  is  impossible  for  them  to  be  regulated  by 
competition.  Therefore,  they  must  be  controlled  and  regulated 
by  the  government;  or  they  must  be  left  to  do  as  they  please;  or 
they  must  be  operated  by  the  public.  There  is  no  other  course. 
None  of  us  is  in  favor  of  leaving  them  to  their  own  will,  and  the 
question  is  whether  it  is  better  to  regtilate  or  to  operate.  .  .  . 

We  are  of  the  opinion  that  a  public  utility  which  concerns  the 
health  of  the  citizens  should  not  be  left  to  individuals,  where  the 
temptation  of  profit  might  produce  disastrous  results,  and  therefore 
it  is  our  judgment  that  undertakings  in  .which  the  sanitary  motive 
largely  enters  should  be  operated  by  the  public. 

We  have  come  to  the  conclusion  that  municipal  ownership  of 
public  utilities  should  not  be  extended  to  revenue-producing  industries 
which  do  not  involve  the  public  health,  the  public  safety,  public 
transportation,  or  the  permanent  occupation  of  public  streets  or 
grounds,  and  that  municipal  operation  should  not  be  undertaken 
solely  for  profit. 

We  are  also  of  the  opinion  that  all  future  grants  to  private  com- 
panies for  the  construction  and  operation  of  pubUc  utilities  should 
be  terminable  after  a  certain  fixed  period,  and  that  meanwhile  cities 
should  have  the  right  to  purchase  the  property  for  operation,  lease 
or  sale,  paying  its  fair  value. 

To  carry  out  these  recommendations  effectively  and  to  protect 
the  rights  of  the  people,  we  recommend  that  the  various  states  shotild 
give  to  their  municipalities  the  authority,  upon  popular  vote  under 
reasonable  regulations,  to  build  and  operate  public  utiHties,  or  to 
build  and  lease  the  same,  or  to  take  over  works  already  con- 
structed. .  .  .  We  beUeve  that  this  provision  wiU  tend  to  make 
it  to  the  enUghtened  self-interest  of  the  public  utility  companies  to 
furnish  adequate  service  upon  fair  terms,  and  to  this  extent  will  tend 
to  render  it  unnecessary  for  the  pubHc  to  take  over  the  existing 
utilities  or  to  acquire  new  ones.  .  .  . 

In  case  the  management  of  public  utilities  is  left  with  private 
companies,  the  public  should  retain  in  all  cases  an  interest  in  the 
growth  and  profits  of  the  future,  either  by  a  share  of  the  profits  or 
a  reduction  of  the  charges,  the  latter  being  preferable  as  it  inures 


PUBLIC  INTEREST  IN  BUSINESS:  OWNERSHIP        383 

to  the  benefit  of  those  who  use  the  utihties,  while  a  share  of  the  profits 
benefits  the  taxpayers. 

Our  investigations  teach  us  that  no  municipal  operation  is  hkely  Factors 
to  be  highly  successful  that  does  not  provide  for:  controlling 

the  success 
First.  An  executive  manager  with  full  responsibiHty,  holding  his   of  municipal 

position  during  good  behavior.  ownership. 

Second.  Exclusion  of  political  influence  and  personal  favoritism 
from  the  management  of  the  undertaking. 

Third.  Separation  of  the  finances  of  the  undertaking  from  those 
of  the  rest  of  the  city. 

Fourth.  Exemption  from  the  debt  limit  of  the  necessary  bond 
issues  for  revenue-producing  utihties,  which  shall  be  a  first  charge 
upon  the  property  and  revenues  of  such  undertaking.  .  .  . 

166.   The  evils  of  railroad  development  ^ 

Let  us  turn  now  to  the  second  type  of  pubHc  utilities,  i.e.  the   Rapid  de- 
steam   railroads.     The   necessity   of   adequate   transportation   was   '^^^pment 
early  recognized  by  both  Federal  and  state  governments,  and  nu-   roads, 
merous  encouragements  were  extended  railroad   corporations  in  the 
development  of  transportation  facilities.    Railroad  development  pro- 
ceeded rapidly  after  1850,  and  particularly  after  the  Civil  War.    The 
benefits  of  this  rapid  development  are  beyond  measure;  on  the  other   Benefits 
hand,  the  unchecked  growth  of  railroad  corporations  in  time  gave   ^^    '^^^^' 
rise  to  numerous  complaints.     In  1886,  a  Select  Committee  of  the 
Senate  of  the  United  States  reported  that  the  complaints  against 
the  railroad  system  were  based  upon  the  following  charges: 

I.  That  local  rates  are  unreasonably  high,  compared  with  through   Complaints 
rates.  against  the 

railroads 

.  2.  That  both  local  and  through  rates  are  unreasonably  high  at   with  respect 
non-competing  points,   either  from  the  absence  of  competition  or   ^°  '^*^^^' 
in  consequence  of  pooling  agreements  that  restrict  its  operation. 

3.  That  rates  are  estabUshed  without  apparent  regard  to  the 
actual  cost  of  the  service  performed,  and  are  based  largely  on  "what 
the  trafiic  will  bear." 

*  From  the  Reports  of  Committees  of  the  Senate  of  the  United  States  for  the  • 

First  Session  of  the  Forty-ninth  Congress,  1885-1886.  Report  of  the  Committee  on 
Interstate  Commerce.     Part  i,  pp.  180-181. 


3«4 


READINGS  IN  AJVIERICAN  DEMOCRACY 


discrimina- 
tions, 


the  suppres- 
sion of  free 
competition, 


favoritism, 


U'responsi- 
bility, 


overcapi- 
talization, 


4.  That  unjustifiable  discriminations  are  constantly  made  between 
individuals  in  the  rates  charged  for  hke  service  under  similar  cir- 
cumstances. 

5.  That  improper  discriminations  are  made  between  articles  of 
freight  and  branches  of  business  of  a  Uke  character,  and  between 
different  quantities  of  the  same  class  of  freight. 

6.  That  unreasonable  discriminations  are  made  between  localities 
similarly  situated. 

7.  That  the  effect  of  the  prevailing  policy  of  railroad  management 
is,  by  an  elaborate  system  of  secret  special  rates,  rebates,  drawbacks, 
and  concessions,  to  foster  monopoly,  to  enrich  favored  shippers, 
and  to  prevent  free  competition  in  many  Unes  of  trade  in  v/hich  the 
item  of  transportation  is  an  important  factor. 

8.  That  such  favoritism  and  secrecy  introduce  an  element  of  un- 
certainty into  legitimate  business  that  greatly  retards  the  develop- 
ment of  our  industries  and  commerce. 

9.  That  the  secret  cutting  of  rates  and  the  sudden  fluctuations 
that  constantly  take  place  are  demoralizing  to  all  business  except 
that  of  a  purely  speculative  character,  and  frequently  occasion  great 
injustice  and  heavy  losses. 

10.  That,  in  the  absence  of  national  and  uniform  legislation,  the 
railroads  are  able  by  various  devices  to  avoid  their  responsibihty 
as  carriers,  especially  on  shipments  over  more  than  one  road,  or  from 
one  state  to  another,  and  that  shippers  find  great  difficulty  in  recov- 
ering damages  for  the  loss  of  property  or  for  injury  thereto. 

11.  That  railroads  refuse  to  be  bound  by  their  own  contracts, 
and  arbitrarily  collect  large  sums  in  the  shape  of  overcharges  in 
addition  to  the  rates  agreed  upon  at  the  time  of  shipment. 

12.  That  railroads  often  refuse  to  recognize  or  be  responsible  for 
the  acts  of  dishonest  agents  acting  under  their  authority. 

13.  That  the  common  law  fails  to  afford  a  remedy  for  such  griev- 
ances, and  that  in  cases  of  dispute  the  shipper  is  compelled  to  sub- 
mit to  the  decision  of  the  railroad  manager  or  pool  commissioner  or 
run  the  risk  of  incurring  further  losses  by  greater  discriminations.  .  .  . 

16.  That  the  capitahzation  and  bonded  indebtedness  of  the 
roads  largely  exceed  the  actual  cost  of  their  construction  or  their 
present    value,  and    that    unreasonable   rates   are   charged   in   the 


PUBLIC   INTEREST  IN    BUSINESS     OWNERSHIP        385 

effort  to  pay  dividends  on  watered  stock  and  interest  on  bonds 
improperly  issued. 

17.  That  railroad  corporations  have  improperly  engaged  in  lines 
of  business  entirely  distinct  from  that  of  transportation,  and  that 
undue  advantages  have  been  afforded  to  business  enterprises  in  which 
railroad  officials  were  interested. 

18.  That  the  management  of  the  railroad  business  is  extravagant   and  extrav- 
and  wasteful,  and  that  a  needless  tax  is  imposed  upon  the  shipping   '^sa-nce. 
and  traveling  pubHc  by  the  unnecessary  expenditure  of  large  sums 

in  the  maintenance  of  a  costly  force  of  agents  engaged  in  a  reckless 
strife  for  competitive  business. 

167.    Government  administration  of  the  railroads, 

1917-1920  1 

The  persistence  of  the  evils  referred  to  in  the  preceding  selection    Legislation 

led,  after  1880,  to  a  good  deal  of  legislation  designed  to  curb  the  proving 

•11                      1  ■                           •  1     ■  ineffective, 
unfair  practices  of  the  railroads.     But  this  earlier  legislation  was  Federal  con- 
unable  effectively  to  control  the  railroad  situation,  and  accordinglv  *™'  °^  *^^ 

.    .  '  roads  in 

the  advocates  of  government  ownership  rejoiced  when  on  Decem-  war-time  is 

ber  26,  191 7,  the  President  proclaimed  the  railroads  under  Federal   welcomed 

1.1  1  r  r  r  ■,  ^y  s°rne  as 

control.     A  large  number  of  factors  prevents  us  from  drawing  any   a  prelude 

satisfactory  conclusion  from  the  war-time  record  of  the  roads,  but   *°  govem- 

.  ment 

it  is  interesting  to  note  that  one  of  the  obvious  benefits  of  gov-   ownership. 

ernment  ownership  was  attained,  i.e.  numerous  economies  of  man- 
agement. These  are  briefly  outlined  in  the  following  extract  from 
the  report  of  the  Director-General  of  Railroads  to  the  President, 
September  3,  igi8: 

The  reorganization  of  the  operating  force  has  been  made  without   Economies 
any  impairment  of  efficiency  and  with  a  reduction  in ,  the  number   °^  govem- 
of  officers  required,  and  in  the  aggregate  of  the  salaries  paid  them    ministra- 
chargeable  to  operating  expenses.  .  .  .  Under  private  control,  salaries   ^^°^' 
as  high  as  $100,000  per  annum  were  paid  officers  of  railroad  corpora- 
tions.    Under  government  control   the  highest   salaries  paid  are  to 
Regional  Directors  (of  whom  there  are  but  seven),  and  these  salaries  reduction  of 
range  from  $40,000  to  $50,000  per  annum.  .  .  .  salaries, 

'  From  the  United  States  Railroad  Administration,  Report  of  the  Director-General 
to  the  President,  etc.     Washington,  1918;  pp.  11-12,  16-21. 


386 


READINGS  IN  AMERICAN  DEMOCR.\CY 


simplifica- 
tion of 
freight 
classifica- 
tions, 


consolida- 
tion of 
ticket 
offices, 


elimination 
of  unneces- 
sary pas- 
senger 
trains, 


better  use 
of  passenger 


Hitherto  there  have  been  some  three  different  freight  classifica- 
tions applying  to  interstate  traffic,  while  many  states  had  their 
owTi  particular  classifications  applying  to  interstate  traffic.  ...  It 
often  happened  that  a  shipment  moving  through  two  or  more  classi- 
fication territories  was  subjected  to  different  rules  in  the  course  of 
its  journey.  .  .  .  Great  confusion  in  rating  and  classification  and 
many  overcharges  and  claims  were  the  result.  To  simplify  this  situa- 
tion a  consolidated  classification  has  been  prepared.  .  .  . 

Inasmuch  as  there  is  no  longer  any  competition  for  freight  and 
passenger  traffic  between  the  various  divisions  of  the  government 
railroad  system,  I  have  ordered  that  soKcitation  of  traffic  and  special 
exploitation  of  passenger  routes  shall  be  discontinued.  In  pursuance 
of  this  poUcy  the  soliciting  forces  of  the  various  railroads  have  been 
either  relieved  from  duty  or  assigned  to  employment  in  connection 
with  the  operating  departments,  and  the  separate  ticket  offices 
formerly  maintained  in  most  of  the  larger  cities  have  been  consoli- 
dated. .  .  .  The  saving  that  will  be  effected  as  a  result  of  this  policy 
is  estimated  at  $23,566,633.  .  .  . 

After  careful  study  a  number  of  unnecessary  passenger  trains 
have  been  eliminated.  Between  many  of  the  larger  cities  of  the 
country  served  by  competing  railroads  there  was  formerly  a  sur- 
plusage of  elaborately  equipped  passenger  trains.  In  many  cases 
they  started  and  arrived  at  the  same  time.  Some  of  them  were  but 
half  filled.  .  .  .  Many  of  these  unnecessary  trains  have  been  ehmi- 
nated.  In  the  territory  west  of  Chicago  and  the  Mississippi  River 
passenger  trains  traversing  an  aggregate  of  21,000,000  miles  a  year 
have  been  done  away  with.  In  the  Eastern  District  unessential 
passenger  trains  that  used  to  travel  26,420,000  miles  per  annum  have 
also  been  eliminated.  .  .  . 

Other  reforms  that  are  being  worked  out  in  the  passenger  service 
include  the  common  use  of  the  same  terminals  by  railroads  formerly 
in  competition  and  using  separate  terminals.  The  most  conspicuous 
example  of  the  latter  innovation  is  the  use  of  the  Pennsylvania 
Terminal  in  New  York  for  through  trains  via  the  Baltimore  &  Ohio 
between  Washington  and  New  York.  ...  In  this  case,  as  in  many 
others,  it  has  been  arranged  that  trains  shall  leave  at  successive 
hours  instead  of  at  the  same  time,  as  they  often  did  in  the  past.  .  .  . 


PUBLIC   INTEREST  IN   BUSINESS:   OWNERSHIP        387 


The  same  principle  is  being  applied  as  rapidly  as  possible  in  the 
consolidation  of  freight  terminals.  The  saving  of  switching  costs 
that  will  result  and  the  greater  rapidity  with  which  cars  can  be  loaded 
and  unloaded  are  obvious.  .  .  . 

Recognizing  the  fact  that  a  straight  line  is  the  shortest  distance 
between  two  points,  extensive  studies  have  been  made  with  the  pur- 
pose of  developing  well-graded  routes  for  the  transportation  of  freight 
that  will  be  shorter  than  those  previously  in  use.  Great  progress 
has  been  made  in  this  direction,  especially  in  the  West,  and  many 
new  through  lines  are  being  developed.  One  of  them  from  Los 
Angeles  to  Dallas  and  Fort  Worth  is  over  500  miles  shorter  than 
the  routing  via  the  Southern  Pacific  lines  formerly  much  used.  .  .  . 


and  freight 
terminals, 


and  the 
shortening 
of  freight 
routes. 


168.   The  Transportation  Act  of  1920^ 

Federal  administration  of  the  nation's  railroads  proved  to  be  short- 
lived, the  roads  being  returned  to  private  control  in  the  spring  of 
1920.  However,  government  administration  had  emphasized  the 
desirability  of  certain  changes  in  the  legislation  regulating  railroads. 
Accordingly,  the  Transportation  Act  of  1920  was  passed.  This  law 
was  designed  to  safeguard  the  roads  during  the  readjustment  period 
after  the  war,  and  to  take  advantage  of  some  of  the  lessons  of  govern- 
ment administration.  Some  of  the  significant  provisions  of  the 
Transportation  Act  of  1920  follow:  ^ 

Sec.  401  ...  (11)  It  shall  be  the  duty  of  every  carrier  by  rail- 
road subject  to  this  Act  to  furnish  safe  and  adequate  car  service, 
and  to  estabUsh,  observe,  and  enforce  just  and  reasonable  rules, 
regulations,  and  practices  with  respect  to  car  service.  .  .  . 

(12)  It  shall  also  be  the  duty  of  every  carrier  by  railroad  to  make 
just  and  reasonable  distribution  of  cars  for  transportation  of  coal 
among  the  coal  mines  served  by  it,  whether  located  upon  its  line  or 
lines  or  customarily  dependent  upon  it  for  car  supply.   .  .  . 

(15)  [In  case  of  shortage  of  equipment,  congestion  or  other  emer- 
gency, the  Interstate  Commerce  Commission  may]  (a)  suspend  the 
operation  of  any  or  all  rules  ...  for  such  time  as  may  be  determined 
by  the  Commission;   [and  (b)  may]  make  such  just  and  reasonable 

'  From  the  Statutes  of  the  United  States,  Transportation  Act  of  IQ20,  Sections 
401,  405,  and  407. 


The  rail- 
roads re- 
turned to 
private  con- 
trol.    The 
Transporta- 
tion Act  of 
1920. 


Duty  to 
furnish  safe 
and  ade- 
quate car 
service, 

and  to 
supply  coal 
mines  with 
cars.' 


Increased 
powers  of 
the  Inter- 
state Com- 
merce Com- 
mission in 
emergencies. 


388 


READINGS  IN  AMERICAN  DEMOCRACY 


The  Com- 
mission 
given  power 
to  control 
the  exten- 
sion and 
abandon- 
ment of 
Hnes. 


Interchange 
of  facilities. 


Common  use 
of   terminals. 


directions  with  respect  to  car  service,  without  regard  to  the  ownership 
as  between  carriers  of  locomotives,  cars  and  other  vehicles,  during 
such  emergency  as  in  its  opinion  will  best  promote  the  service  in  the 
interest  of  the  pubUc.  .  .  .  [In  pursuance  of  this  power,  the  Com- 
mission may]  require  such  joint  or  common  use  of  terminals  ...  as 
in  its  opinion  will  best  meet  the  emergency  and  serve  the  public 
interest.  .  .  .  [The  Commission  may  also,  in  such  case,]  give  direc- 
tions for  preference  or  priority  in  transportation,  embargoes,  or 
movement  of  trafhc  under  permits,  at  such  time  and  for  such  periods 
as  it  may  determine.  ... 

(i6)  Whenever  the  Commission  is  of  opinion  that  any  carrier  by 
railroad  subject  to  this  Act  is  for  any  reason  unable  to  transport 
the  traffic  offered  it  so  as  properly  to  serve  the  public,  [the  Commission 
may]  make  such  just  and  reasonable  directions  with  respect  to  the 
handhng,  routing,  and  movement  of  the  traffic  of  such  carrier  ...  as 
in  the  opinion  of  the  Commission  will  best  promote  the  service  in 
the  interest  of  the  public.  ... 

(i8)  [Hereafter  no  railroad]  shall  undertake  the  extension  of  its 
line  of  railroad,  or  the  construction  of  a  new  line  of  railroad,  or  shall 
acquire  or  operate  any  line  of  railroad,  or  extension  thereof,  .  .  .  un- 
less and  until  there  shall  first  have  been  obtained  from  the  Commission 
a  certificate  that  the  present  or  future  public  convenience  and  neces- , 
sity  require  or  will  require  the  construction,  or  operation  ...  of  I 
such  additional  or  extended  line  of  [railroad.  And]  no  carrier  by 
railroad  .  .  .  shall  abandon  all  or  any  portion  of  a  Une  of  railroad, 
or  the  operation  thereof,  unless  and  until  there  shall  first  have 
been  obtained  from  the  Commission  a  certificate  that  the  present 
or  future  public  convenience  and  necessity  permit  of  such  abandon- 
ment. .  .  . 

Sec.  405  ...  (3)  All  carriers  .  .  .  shall,  according  to  their  re- 
spective powers,  afiford  all  reasonable,  proper,  and  equal  facilities 
for  the  interchange  of  traffic  between  their  respective  lines,  and  for 
the  receiving,  forwarding,  and  delivering  of  passengers  or  property 
to  and  from  their  several  Hnes  and  those  connecting  therewith.  .  .  . 

(4)  If  the  Commission  finds  it  to  be  in  the  public  interest  and  to 
be  practicable,  without  substantially  impairing  the  ability  of  a  car- 
rier owning  or  entitled  to  the  enjoyment  of  terminal  facilities  to  handle 


PUBLIC  INTEREST  IN  BUSINESS:    OWNERSHIP       389 


its  own  business,  it  shall  have  power  to  require  the  use  of  any  such 
terminal  facilities  ...  by  another  carrier  or  other  carriers.  .  .  . 
Sec.  407  ...  (4)  The  Commission  shall  as  soon  as  practicable 
prepare  and  adopt  a  plan  for  the  consolidation  of  the  railway  prop- 
erties of  the  continental  United  States  into  a  limited  number  of 
systems.  In  the  division  of  such  railways  into  such  systems  under 
such  plan,  competition  shall  be  preserved  as  fully  as  possible,  and 
wherever  practicable  the  existing  routes  and  channels  of  trade  and 
commerce  shall  be  maintained.  .  .  . 


The  Com- 
mission 
empowered 
to  plan  the 
consoHda- 
tion  of  the 
nation's 
railroads. 


Questions  on  the  foregoing  Readings 

1.  Into  what  two  classes  may  public  utilities  be  divided? 

2.  In  what  way  does  the  railroad  corporation  differ  from  the  ordinary 

corporation? 

3.  What  was  Judge  Russell's  opinion  in  this  regard? 

4.  What  are  the  reciprocal  obligations  of  the  railroad  and  the  state? 

5.  What   two   factors   have   stimulated   the   movement   for   the   mu- 

nicipal ownership  of  local  utilities? 

6.  What  is  the  extent  of  municipal  ownership  with  respect  to  water 

works? 

7.  Why  has   the  movement  been  relatively  slow  in  the  manufacture 

of  gas? 

8.  What  is  the  extent  of  municipal  ownership  in  the  street  railway 

business? 

9.  What  did  the   Commission  on  Public  Ownership  and  Operation 

conclude  as  to  which  industries  should  be  operated  by  the  public, 
and  which  should  not  be  so  operated? 

10.  What,  according  to  the  Commission,  are  the  chief  factors  which 

will  determine  the  future  development  of  municipal  ownership? 

11.  Name  some  complaints  against  the  railroads  with  respect  to  rates. 

12.  What  charges  were  brought  against  the  railroads  with  respect  to 

discriminations? 

13.  What  is  meant  by  saying  that  formerly  the  railroads  avoided  their 

responsibility  as  carriers? 

14.  What  charge  was  brought  against  the  railroads  with  respect  to 

extravagance? 

15.  During  what  period  of  our  history  were  the  railroads  placed  under 

governmental  control? 

16.  What,  according  to  the   Director-General  of  the  Railroads,  were 

the  economies  of  governmental  administration  with  respect  to 
the  elimination  of  unnecessary  passenger  trains? 


39° 


READINGS  IN  AMERICAN  DEMOCRACY 


17.  What  saving  was  effected  in  the  use  of  ticket  offices? 

18.  How  were  passenger  and  freight  terminals  utilized  more  advan- 

tageously under  government  administration? 

19.  Name   an   important   saving   with  respect  to   the   utilization   of 

freight  routes. 

20.  What  important  railroad  legislation  was  enacted  in  1920? 

21.  What  did  this  act  say  with  regard  to  the  duty  of  common  carriers 

to  furnish  car  service? 

22.  How  did  the  act  increase  the  powers  of  the  Interstate  Commerce 

Commission  in  time  of  emergency? 

23.  Explain  the  extent  to  which  the  act  gave  the  Commission  control 

over  the  extension  and  abandonment  of  lines. 

24.  What  did  the  act  say  regarding  the  use  of  terminals  by  carriers 

not  owning  those  terminals? 

25.  What  provision  was  made  for  the  consolidation  of  the  nation's 

railroads? 


CHAPTER  XXIX 

THE   TARIFF 

169.    The  basis  of  international  trade  ^ 

The  tariff  question  is  a  phase  of  the  larger  problem  of  international   The  tariff 

trade.    International  trade  is  a  wide-spread  and  persistent  phenom-   ^"^^^'"'^  ^ 

'^  ^  "^^  phase  of 

enon,  and,  like  domestic  trade,  is  based  upon  the  instinct  of  peoples  the  problem 

to  exchange  products  which  they  want  relatively  little  for  products  n^^t-Q^'IJi" 

which  they  want  relatively  much.     In  the  following  selection,  Pro-  trade. 
fessor  Alvin  S.  Johnson  discusses  international  trade  as  the  funda- 
mental basis  of  the  tariff  question: 

From  early  modern  times,  when  men  first  began  to  think  sys-  Trade  be- 

tematically  upon  economic  subjects,  a  great  deal  of  attention  has  gnt^^^rts^of 

been  bestowed  upon  the  exchange  of  goods  between  persons  living  the  same 

under  different  governments,  or  international  trade.     It  was  for  a   "=°^"'^''y 

compared 

long  time  beUeved  (and  it  is  still  widely  believed)  that  such  trade   with  trade 

differs  radically  in  its  nature  from  trade  that  is  carried  on  within   ^'^^^^^'^ 

nations. 

the  limits  of  a  single  country.  While  the  latter,  it  is  generally  ad- 
mitted, is  an  unmixed  good,  and  ought  to  be  encouraged,  or  at  any 
rate  granted  the  most  perfect  freedom  by  government,  the  former, 
many  beUeve,  is  often  a  doubtful  blessing  and  ought  to  be  closely 
scrutinized  and  regulated,  and,  under  many  circumstances,  dis- 
couraged or  even  prohibited.  .  .  . 
All  permanent  trade  is  based  upon  differences  in  character  of   Permanent 

productive  powers.  .  .  .  trade  based 

_  .  on  diSer- 

One  region  may  have  excellent  mineral  deposits  but  lack  fertile   ences  in 

land  for  the  growing  of  food;    another  region  may  be  quite  devoid    p^^Jf"^ 

of  minerals,  but  abundantly  supplied  with  rich  lands.    In  one  region 

the  character  of  the  population  may  be  such  as  to  fit  it  for  kinds  of   Illustrations. 

*  From  Alvin  S.  Johnson,  Introduction  to  Economics.     D.  C.  Heath  &  Co.  ,1909; 
PP-  324-328. 

391 


392 


READINGS  IN  AMERICAN  DEMOCRACY 


The  result. 


In  some 
cases  the 
products 
exchanged 
are  quite 
dissimilar, 


but  usually 
one  or  both 
of  the  trad- 
ing regions 
can  produce 
both  of  the 
products 
exchanged. 


work  requiring  skill  and  taste,  but  not  such  as  to  fit  it  for  kinds  of 
work  requiring  great  muscular  strength  and  endurance.  In  another 
region  the  population  may  be  almost  incapable  of  acquiring  taste 
and  skill,  although  it  is  well  fitted  for  labor  demanding  rude  muscular 
power. 

Capital  may  be  plentiful  and  cheap  in  one  region  and  scarce  and 
dear  in  another.  [Thus]  industries  requiring  vast  capital  can  be  op- 
erated to  greater  advantage  in  the  former  region  than  in  the  latter. 

Land  may  be  plentiful  in  one  region,  relatively  to  the  population, 
and  scarce  in  another.  Industries  requiring  an  extensive  use  of  land 
will  find  their  natural  habitat  in  the  former  region. 

The  populations  of  two  regions,  though  differing  little  in  funda- 
mental character,  may  differ  widely  in  their  attitude  toward  particular 
forms  of  toil.  They  possess  different  habits,  or,  more  properly, 
traditions  of  workmanship,  which  fit  the  one  better  for  one  kind  of 
labor,  the  other  for  another. 

So  long  as  any  of  these  differences  persist,  there  is  obviously  reason 
why  there  should  be  differences  in  the  industries  of  the  two  regions 
With  adequate  means  of  communication,  trade  between  the  two 
regions  naturally  arises.  .  .  . 

In  some  cases  the  products  of  two  regions  are  quite  dissimilar. 
Neither  region  can  produce  the  commodities  which  it  receives  from 
the  other.  Thus  in  the  Middle  Ages  an  important  trade  was  carried 
on  between  northern  Europe  and  the  Indies.  The  former  region 
furnished  furs  and  amber,  the  latter,  spices  and  gems.  A  modern 
example  of  the  same  sort  of  trade  is  the  exchange  of  iron  and  steel 
products  for  teas,  coffee,  and  spices  between  England  on  the  one  hand, 
and  the  East  Indies  on  the  other.  In  general,  the  trade  between 
countries  in  the  temperate  zone,  on  the  one  hand,  and  countries  in 
the  torrid  zone,  on  the  other,  is  largely  of  this  character.  .  .  . 

More  commonly  one' of  the  trading  regions,  or  both,  can  produce 
both  classes  of  commodities  exchanged.  The  United  States  can! 
produce  both  sugar  and  pork;  so  also  can  Cuba.  But  the  United 
States  possesses  exceptional  advantages  for  the  production  of  pork: 
for  the  production  of  sugar  it  is  not  especially  well  adapted.  Cuba,j 
on  the  other  hand,  has  unsurpassed  advantages  for  the  production 
of  sugar,  but  can  produce  pork  with  only  a  moderate  degree  of  sue- 


I 


THE  TARIFF 


393 


cess.    It  is,  therefore,  natural  that  an  exchange  of  products  between 
the  two  countries  should  take  place.  .  .  , 

170.   The  nature  of  the  tariff  ^ 

Suppose,  in  the  case  just  mentioned,  that  there  were  no  artificial   what  would 

hindrances  to  the  exchange  of  pork  and  sugar  between  the  United   ^^^PP^"  if 

there  were 
States  and  Cuba.    In  such  an  event,  economic  considerations  would   no  interfer- 

determine  the  extent  and  nature  of  this  international  trade.    In  such  f"^'^  ^'^^ 

,       ,  ,       , .  ...  ,  international 

a  case  we  should  adjust  our  production  m  such  a  way  as  to  produce  trade. 
all  the  pork  that  Cuba  needed,  while  Cuba  would  tend  to  speciaUze 
in  the  growinof  of  sugar  for  our  consumption.    But  the  international 
exchange  of  products  is  not  always  unfettered,    in  many  instances 
artificial  restrictions  are  placed  upon  such  exchange,  that  is  to  say, 
a  tax  or  duty  known  as  a  tariff  is  levied  upon  the  goods  of  foreign  na-   The  tariff, 
tions  as  they  enter  a  particular  country  for  sale.    The  nature  of  the 
tariff  is  briefly  described  by   Professor  Johnson  in  the   following 
language: 
Since  early  modern  times  a  great  part  of  the  energy  of  governments   Two  reasons 

has  been  expended  upon  the  regulation  of  international  trade.     The   ^""^  ^^^  ^^^' 
.  1.1  ulation  of 

reason  tor  such  regulation  has  been  twofold.    In  the  first  place,  there   international 
is  a  deep-rooted  belief  in  the  people  of  every  nation  that  the  national   '^'■'^'^^• 
prosperity  may  be  furthered  by  restrictions  upon  trade  with  foreigners. 
In  the  second  place,  such  trade  has  long  been  recognized  as  a  con- 
venient and  appropriate  source  of  pubhc  revenue. 

A  century  ago  the  policy  of  prohibiting  the  importation  of  some    How  un- 
classes  of  goods,  and  the  exportation  of  other  classes,  was  widely  fol-   desirable 

,1  goods  are 

lowed.  At  present  this  pohcy  has  practically  fallen  into  disuse.  Some  kept  out  of 
of  the  states  of  eastern  Europe  prohibit  the  exportation  of  grain  when  ^  country. 
the  supply  appears  to  be  insufficient  to  keep  the  people  of  those  states 
from  starving.  Most  countries  prohibit  the  importation  of  certain 
commodities  that  are  beheved  to  menace  the  health  of  the  consumer. 
Omitting  such  exceptional  cases,  however,  we  may  say  that  the  regula- 
tion of  foreign  trade  is  ever>^where  carried  on  under  the  guise  of  taxa- 
tion.    If  we  wish  to  prohibit  the  importation  of  cotton  from  Eg>'pt, 

*  From  Alvin  S.  Johnson,  Introduction  to  Economics.    D.  C.  Heath  &  Co.,  igog; 
PP-  348-350. 


394 


READINGS   IN  AMERICAN  DEMOCRACY 


Our  tariff 
problem  re- 
lates solely 
to  taxes  on 
imports. 


Duties  may 
be  for  re\'- 
enue,  or 
for  protec- 
tive pur- 
poses. 


Revenue 
duties  may 
afford  some 
protection, 

and  protec- 
tive duties 
yield  rev- 
enue. 


we  place  such  high  taxes  upon  imports  of  Egyptian  cotton  that  no 
one  finds  it  worth  while  to  import  it. 

Taxes  on  foreign  trade  may  be  levied  upon  either  imports  or 
exports  or  upon  both.  Export  taxes  are  generally  unpopular,  because 
of  the  common  behef  that  it  is  a  good  thing  to  export  as  many  goods 
as  possible.  In  the  United  States  export  taxes  are  prohibited  by 
the  Constitution.  We  shall,  therefore,  confine  our  study  to  taxes  on 
imports. 

[The  difference  between  taxes  levied  for  revenue,  and  taxes  levied 
for  protection  may  be  illustrated  as  follows]:  Before  the  annexation 
of  Porto  Rico  all  the  coffee  used  in  the  United  States  came  from  foreign 
soil.  A  tax  (or  "duty")  of,  say,  five  cents  a  pound  under  the  con- 
ditions would  have  discouraged  importation  in  only  a  shght  degree. 
[In  such  a  case  the  tax  would  constitute  a  "revenue"  tariff.] 

A  duty  of  $20  a  ton  on  steel,  on  the  other  hand,  would  practically 
prohibit  the  importation  of  steel.  .  .  .  Suppose  that  we  can  produce 
steel  at  $15  a  ton,  while  in  some  foreign  country  it  can  be  produced 
at  $12.  If  the  cost  of  bringing  steel  from  the  foreign  country  is  $2 
a  ton,  foreign  producers  can  seU  steel  here  at  lower  prices  than  our 
own  producers  can  afford  to  take.  But  if  foreign  steel  is  compelled 
to  pay  a  duty  of  $20  a  ton,  none  of  it  can  be  sold  here,  unless  the 
American  producers  combine  and  force  steel  up  to  the  price  of  $34  a 
ton.  Such  a  duty,  since  it  "protects"  domestic  producers  against 
foreign  competition,  is  known  as  a  protective  duty.  .  .  . 

Of  course  a  duty  the  aim  of  which  is  the  raising  of  revenue  may 
be  incidentally  protective.  Thus  if  we  were  to  levy  a  duty  on  imported 
coffee,  it  would  "protect"  the  coffee  growers  of  Porto  Rico. 

On  the  other  hand,  protective  duties  may  incidentally  jdeld  a 
revenue.  In  the  case  employed  above,  if  the  duty  on  foreign  steel 
had  been  $1  instead  of  $20,  foreign  steel  would  have  continued  to 
be  imported,  and  thus  a  revenue  would  have  been  obtained.  At 
the  same  time  the  foreigner  would  have  been  prevented  from  under- 
seUing  the  American;  accordingly,  the  latter  would  have  been  pro- 
tected. Most  of  our  duties  are  protective,  but  incidentally  yield 
a  revenue,  as  they  are  not  high  enough  to  prevent  importation 
altogether. 

The  schedule  of  all  duties  levied  by  a  country  is  known  as  the 


THE  TARIFF  395 

"tariff."  A  tariff  consisting  of  duties  whose  main  object  is  the  rais-  Conclusion, 
ing  of  a  revenue  is  known  as  a  revenue  tariff.  ...  A  protective 
tariff  consists  mainly  of  duties  whose  purpose  is  the  protection  of 
domestic  producers  against  foreign  competition.  Such  a  tariff  has 
been  in  force  in  the  United  States  since  early  in  the  nineteenth  cen- 
tury; its  character  has  been  most  strongly  marked  since  the  Civil  War. 

171.   The  United  States  Tariff  Commission  ^ 

In  the  United  States,  and  in  other  highly  industrial  countries   A  Tariff 
in  which  the  protective  principle  is  intrenched,  a  great  deal  of  time   creat^T*^"^ 
and  ingenuity  must  necessarily  be  expended  upon  the  determination   facilitate 
of  tariff  policies  and  administration.     Congress  enjoys  the  privilege   [^ .     ^^^' 
of  legislating  on  tariff  questions,  but  there  has  long  been  need  of 
some  agency  which  would  supply  the  national  legislature  with  ade- 
quate information  on  tariff  questions.    In  1916  there  was  an  attempt 
to  fill  this  need  by  the  creation  of  the  United  States  Tariff  Commission. 
This  Commission  consists  of  six  members  appointed  by  the  President 
for  twelve  years,  not  more  than  three  of  whom  may  belong  to  the 
same  political  party.     The  work  of  the  Commission  was  described 
in  1920  by  its  chairman,  Thomas  W.  Page,  as  follows: 

The  United  States  Tariff  Commission  has  no  administrative  duties    General 

whatever.     It  was  created  to  make  investigations,   assemble  and   P^^po^*^  of 

the  Com- 
digest  information,  and  lay  the  results  before  the  President  and  Con-   mission. 

grass.    The  Tariff  Commission  is  required  to  respond  to  any  request 

made  upon  it  by  the  President,   the  Congress  as  a  whole,  either 

house  of  Congress,  the  Finance  Committee  of  the  Senate,  and  the 

Committee  on  Ways  and  Means  of  the  House  of  Representatives.   It 

j   is  contemplated  that  these  requests  will  be  for  information.     Thus 

far,  I  may  say,  the  requests  have  been,  in  the  main,  Umited  to  this 

field.  .  .  . 

The  most  important  of  Qhe  duties  of  the  Commission]  may  be   Duties  of 

grouped  under  three  heads.  ^^^  9°™' 

_  mission: 

First,  the  Commission  is  required  to  investigate  the  operation 

and  the  form  of  the  law  actually  in  force  with  a  view  to  ascertaining 

'  From  the  National  Tax  Association,  Proceedings  of  the  Thirteenth  Annual 
Conference  on  Taxation,  held  at  Salt  Lake  City,  September  6-10,  ig20.  New 
York,  1921;  pp.  221-224. 


396 


READINGS  IN  AMERICAN  DEMOCRACY 


The  codifi- 
cation and 
simplifica- 
tion of  the 
customs  ad- 
ministrative 
laws. 


The  study 
of  foreign 
tariffs. 


Effects  of 
the  tarifi 
upon  Amer- 
ican indus- 
tries. 


A  commod- 
ity survey 
necessary. 


whether  the  true  intent  of  Congress  is  being  carried  out.  It  may 
surprise  you  to  know  that  no  codification  or  attempt  at  classifying 
and  elucidating  our  customs  administrative  laws  has  been  made  in 
this  country  for  more  than  a  century.  The  law  has  been  gradually 
built  up  by  the  imposition  of  one  statute  upon  another,  often  with- 
out adequate  consideration  of  the  operation  of  the  acts  already  in 
force,  with  the  result  that  conilict  and  confusion  have  often  prevented 
the  proper  enforcement  of  the  provisions  as  intended  by  Con- 
gress. .  .  .  The  Tariff  Commission,  therefore,  as  one  of  its  first  activi- 
ties codified  the  law,  redrafted  it  in  simple  form,  and  prepared  a 
report  which  it  submitted  to  Congress.  .  .  , 

The  second  group  of  duties  of  the  Tariff  Commission  deals  with 
the  relation  of  our  tariff  to  foreign  tariffs.  This  bids  fair  to  be  a 
field  of  great  importance  and  of  intense  interest.  Tariff  pohcies  of 
the  whole  world  are  in  process  of  being  remade  since  the  war.  ...  In 
revising  our  tariff  Congress  needs  explicit  and  ready  information 
as  to  the  pohcies  and  legislative  measures  of  the  nations  with  which 
we  trade.  This  country  and  others  have  long  looked  upon  the  tariff 
as  a  means  of  preventing  discrimination  and  unfair  treatment,  and  it 
will  be  necessary  for  Congress  to  know  in  detail  what  is  the  treat- 
ment of  our  commerce  by  other  countries  when  it  comes  to  framing 
a  new  tariff  bill.  .  .  . 

The  third,  and  in  some  respects  the  most  important  of  all  the 
duties  devolving  on  the  Tariff  Commission,  consists  in  investigating 
the  effects  of  the  tariff  on  American  industries  and  in  making  such 
a  survey  of  the  conditions  surrounding  these  industries  as  will  show 
when  the  need  exists  for  tariff  revision. 

Thus  far  the  Commission  has  covered  nearly  half  of  the  items 
mentioned  in  the  tariff  and  a  large  number  of  equally  important  items 
that  are  not  mentioned  by  name.  The  information  assembled  is 
recorded  for  each  item  in  what  we  call  a  Tariff  Information  Survey 
and  each  survey  is  intended  to  contain  in  regard  to  the  item  it  covers 
all  the  facts  that  are  pertinent  to  the  tariff.  .  .  . 

With  some  items  an  important  fact  would  consist  in  explaining  . 
what  the  thing  under  consideration  really  is.     In  practically  every 
schedule   occur   the  names  of   commodities  that  are  commercially 
dealt  in,  but  the  nature  and  uses  of  which  are  unknown  to  most  citi- 


THE  TARIFF  397 

zens  and  to  most  Congressmen,  so  that  we  begin  our  surveys  with    How  the 

the  description  of  the  product  concerned  and  a  statement  of  its   Commission 

gathers  m- 
chief  uses.  formation 

We  proceed  to  consider  the  domestic  production  of   the  article;   *^o"'^^'^|^s 

.     .  '    commodi- 

the  materials  out  of  which  it  is  made,  whether  they  have  to  be  im-  ties. 

ported,  or  are  produced  in  this  country;  the  nature  of  the  equip- 
ment used  in  the  industry,  whether  foreign  or  domestic;  a  sufficient 
description  of  the  methods  of  production  to  give  to  the  Congressmen 
and  the  citizen  some  idea  of  what  the  industry  is  like;  and  then  we 
study  the  organization  of  the  industry,  whether  it  is  conducted  on 
a  large  scale,  under  highly  centraUzed  control  as,  for  example,  in  the 
meat  packing  business,  or  whether  it  is  widely  distributed  in  small 
scale  units  under  individual  ownership,  as  is  for  the  most  part  the  case 
mth  the  fruit  and  vegetable  packing  industr>^  ... 

[We  also]  show  the  amount  of  production  and  give  an  estimate   The  ques- 
of  the  domestic  consumption  with  a  view  to  showing  whether  the   ^'u"^^ 
domestic  industry  has  a  capacity  to  satisfy  the  domestic  demand,    not  imports 
or  whether  imports  in  considerable  quantities  are  necessary.     The 
latter  case  might  well  be  illustrated  by  reference  to  woolgrowing, 
many  millions  of  pounds  of  wool  being  necessarily  imported.    Natu- 
rally we  also  study  the  amount  and  character  of  the  exports,  if  there 
are  any.  ... 


172.   Tariff  principles  of  the  Democratic  party  ^ 

Each  of  the  great  poHtical  parties  has  long  had  a  more  or  less  definite   Each  of 

tariff  policy,  and  consequently  it  is  possible  somewhat  to  predict   ^^^  F^^*- 

the  eff^ects  upon  the  tariff  of  a  change  in  administration.    The  Repub-   a  more  or 

lican  party  was  in  power  for  most  of  the  period  between  the  Civil   less  definite 
t-      ■'  t^  t-  ^^^  poUcy. 

War  and  1912,  and  the  general  tariff  poKcy  during  this  period  was 
one  of  protection.  The  Democrats  charged  that  the  high  cost  of 
living  and  other  evils  were  the  result  of  this  long-continued  pro- 
tection. In  191 2  the  Democratic  party  platform  expressed  the 
following  views  on  the  tariff: 
We  declare  it  to  be  a  fundamental  principle  of  the  Democratic 

I  From  the  Democratic  National  Committee,  Democratic  Campaign  Text-bookt 
1912;  pp.  2,  4,  166-167,  i6g. 


are  neces- 
sary. 


398 


READINGS  IN  AMERICAN  DEMOCRACY 


The  Demo- 
cratic party 
declares  a 
protective 
tariff 

unconstitu- 
tional. 

Evils  of  the 
RepubUcan 
policy  of 
protection. 


The  Demo- 
crats de- 
mand a 
downward 
revision  of 
the  tariff. 


President 
Taft's  tariff 
policy  de- 
nounced, 


and  the 
people  ap- 
pealed to. 


party  that  the  Federal  government  under  the  Constitution  has  no 
right  or  power  to  impose  or  collect  tariff  duties  except  for  the  pur- 
pose of  revenue,  and  we  demand  that  the  collection  of  such  taxes 
shall  be  limited  to  the  necessities  of  government  honestly  and  eco- 
nomically administered. 

The  high  Republican  tariff  is  the  principal  cause  of  the  unequal 
distribution  of  wealth,  it  is  a  system  of  taxation  which  makes  the 
rich  richer  and  the  poor  poorer;  under  its  operations  the  American 
farmer  and  laboring  man  are  the  chief  sufferers;  it  raises  the  cost  of 
the  necessaries  of  life  to  them,  but  does  not  protect  their  product 
or  wages.  The  farmer  sells  largely  in  free  markets  and  buys  almost 
entirely  in  the  protected  markets.  In  the  most  highly  protected 
industries,  such  as  cotton  and  wool,  steel  and  Iron,  the  wages  of  the 
laborers  are  the  lowest  paid  in  any  of  our  industries.  We  denounce 
the  Republican  pretense  on  that  subject  and  assert  that  American 
wages  are  established  by  competitive  conditions  and  not  by  the  tariff . 

We  favor  the  immediate  downward  revision  of  the  existing  high, 
and,  in  many  cases,  prohibitive  tariff  duties,  insisting  that  material 
reductions  be  speedily  made  upon  the  necessaries  of  life.  Articles 
entering  into  competition  with  trust-controlled  products  and  articles 
of  American  manufacture  which  are  sold  abroad  more  cheaply  than 
at  home,  should  be  put  upon  the  free  list. 

We  recognize  that  our  system  of  tariff  taxation  is  intimately  con- 
nected with  the  business  of  the  country,  and  we  favor  the  ultimate 
attainment  of  the  principles  we  advocate  by  legislation  that  will  not 
injure  or  destroy  legitimate  industry. 

We  denounce  the  action  of  President  Taft  in  vetoing  the  bills  to 
reduce  the  tariff  in  the  cotton,  woolen,  metals  and  chemical  schedules, 
and  the  farmers'  free  Hst  bill,  all  of  which  were  designed  to  give 
immediate  relief  to  the  masses  from  the  exactions  of  the  trusts. 

The  Republican  party,  while  promising  tariff  revision,  has  shown 
by  its  tariff  legislation  that  such  revision  is  not  to  be  in  the  people's 
interest;  and  having  been  faithless  to  its  pledges  in  1908,  it  should 
no  longer  enjoy  the  confidence  of  the  nation.  We  appeal  to  the  Ameri- 
can people  to  support  us  in  our  demand  for  a  tariff  for  revenue  only. 

The  high  cost  of  living  is  a  serious  problem  in  every  American 
home.     The  RepubKcan  party,  in  its  platform,  attempts  to  escape 


THE  TARIFF  399 

from  responsibility  for  present  conditions  by  denying  that  they  are  Protection 

due  to  a  protective  tariff.     We  take  issue  with  them  on  this  subject   '^""S^'y ., , 

.  .  ,  responsible 

and  charge  that  excessive  prices  result  in  a  large  measure  from  the  for  the  high 
high  tariff  laws  enacted  and   maintained  by  the  Repubhcan  party   ?°^^ 
and  from  trusts  and  commercial  conspiracies  fostered  and  encouraged 
by  such  laws,  and  we  assert  that  no  substantial  rehef  can  be  secured 
for  the   people   until   import  duties  on  the  necessaries  of   hfe  are 
materially  reduced  and  these  criminal  conspiracies  broken  up.  .  .  . 

It  has  been  frequently  asserted  that  the  Democratic  party  was  it  is  not 
responsible  for  the  panic  of  1893  and  the  years  immediately  foUow-  *f"^T^  '^ 
ing.  ...     It  is  asserted  that  the  hardships  of  that  period  were  due  cratic  tariff 

to  Democratic  tariff,    that  the  tariff  is  responsible  for  success  or   P°''py  breeds 

^  panics, 

failure;  that  the  protective  principle  in  tariff  taxation  means  mate- 
rial progress,  while  the  tarifif  for  revenue  only  means  financial  adver- 
sity. If  one  period  is  considered,  accepting  that  from  1890  to  1897, 
and  all  other  history  were  forgotten,  this  allegation  would  not  be 
proven.  If  the  failures  in  business  are  taken  as  the  test  of  the  law, 
an  interesting  fact  is  developed.  The  McKinley  tariff  biU  [a  Repub- 
hcan measure]  went  into  effect  October  6,  1890,  and  remained  in 
force  until  August  27,  1894,  and  included  the  worst  of  the  panic  of 
that  period.  .  .  .  Everyone  famihar  with  ,American  history  knows 
that  no  Democratic  tariff  law  nor  Democratic  administration  was 
responsible  for  the  unfortunate  conditions  of  those  times.  .  .  . 
It  has  been  repeatedly  stated  that  the  Democrats  would  destroy   The  Demo- 

the  tariff  and  that  protection  is  in  the   interest  of  the  workingman   '^r^^"^  P'^''^^ 
^  _      aims  to 

and  the  only  hope  of  his  well-being  is  in  the  continuance  of  Republi-   lighten  the 
can  supremacy.     The  people  are  told  that  free   trade,  which  they   burdens  of 
allege  is  the  doctrine  of  democracy,  would  stop  the  wheels  of  industry   sumer. 
and  throw  the  laborer  on  the  mercy  of    the  government  without 
employment.     The  truth  is  that  the  Democratic  party  has  no  inten- 
tion to  destroy  a  single  legitimate  industry,  neither,  as  the  result  of 
its  control,  need  a  single  individual  be  without  employment.    Its  pur- 
pose is  to  hghten  the  burdens  of  the  consumer.  .  .  . 


400 


READINGS  IN  AMERICAN  DEMOCRACY 


The  Demo- 
crats in 
power. 


The  Under- 
wood-Sim- 
mons act  of 
1913- 


Republican 
tariff  prin- 
ciples. 


Confidence 
in  the  pro- 
tective prin- 
ciple. 


Uncertainty 
due  to  the 
Worl.l  War. 


173.   Tariff  principles  of  the  Republican  party  ^ 

The  Democratic  party  won  the  presidential  election  of  191 2,  and 
Woodrow  Wilson  was  installed  as  President.  The  Democrats  pro- 
ceeded to  apply  their  tariff  principles,  and  the  result  was  the  Under- 
wood-Simmons act  of  1913.  This  measure  reduced  the  tariff  duties 
on  some  important  commodities,  and  placed  a  number  of  articles 
on  the  free  list.  The  Democrats  also  won  the  presidential  election 
of  1 916,  but  during  President  Wilson's  second  terra  there  were  indi- 
cations that  the  Republicans  would  shortly  return  to  power.  It  is 
important,  therefore,  to  notice  the  tariff  principles  of  the  RepubHcan 
party,  as  enunciated  in  1920: 

The  Ways  and  Means  Committee  of  the  present  Republican 
Congress  and  the  Senate  Finance  Committee  have  recognized  that 
the  present  abnormal  situation  in  foreign  trade  and  the  interna- 
tional exchange  precludes  any  comprehensive  tariff  program  or  revi- 
sion until  conditions  governing  the  future  of  our  foreign  trade  can  be 
predicted  with  greater  certainty. 

There  never  has  been  any  doubt  concerning  the  principle  under- 
lying the  Repubhcan  tariff  policy.  Our  platform  for  1920  says: 
"  The  Republican  party  reaffirms  its  beUef  in  the  protective  principle 
and  pledges  itself  to  a  revision  of  the  tariff  as  soon  as  conditions 
shall  make  it  necessary  for  the  preservation  of  the  home  market  for 
American  labor,  agriculture  and  industry." 

The  immediate  application  of  that  principle  will  require  new 
wisdom  and  new  knowledge  of  the  present  abnormal  international 
trade  situation.  Therefore,  our  platform  of  1920  combines  its  pledge 
of  loyalty  to  the  principle  of  protection  with  its  statement  concern- 
ing international  trade:  "  The  uncertain  and  unsettled  condition 
of  international  balances,  the  abnormal  economic  and  trade  situation 
of  the  world,  and  the  impossibiUty  of  forecasting  accurately  even 
the  near  future,  preclude  the  formulation  of  a  definite  program  to 
meet  conditions  a  year  hence."  .  .  . 

What  Senator  Harding  said  on  the  tariff  in  his  keynote  speech  as 
Chairman  of  the  Republican  National  Convention  in  Chicago  in  1916 

•  From  the  Republican  National  Committee,  Republican  Campaign  Text-book, 
1920;  pp.  487-489. 


THE  TARIFF  401 

shows  how  firmly  he  believes  in  the  principles  of  protection.  .  .  .     Senator 
The  following  extracts  from  his  iqi6  Chicago  speech  are  worth  re-    "'■"■'''"«  ''<^- 

Clares  the 
peating:  Republican 

"Subsistence  is  the  first  requisite  of  existence,  and  we  have  the    i'^''^y^/*^- 

sponsible 

higher  American  standard  of  hving  because  of  the  Republican  pro-    for  our  hish 

tective  policy  which  makes  of  Americans  the  best  paid  workmen  in   ■*}'''."'l^"'  o^ 

'  living. 

aU  the  world.  ... 

"It  is  not  for  me  to  put  the  stamp  of  relative  importance  on  pend-    He  believes 

ing  issues  —  the  intelligent  voters  will   determine  that   for  them-  people 

want  a  pro- 

selves.     But  I  know  what  they  are  thinking,  and  they  beUeve  that    tective 

the  protective  policy  which  made  us  industrially  and  commercially   ^  '^^' 

eminent  is  necessary  to  preserve  that  eminence.    I  know  they  want 

it  restored  and  maintained.     For  myself  I  prefer  a  protective  and 

productive  tariff  which  prospers  America  first.     I  choose  the  economic 

policy  which  sends  the  American  workingmen  to  the  savings  bank 

rather  than  to  soup-houses.  .  .  . 

"Moreover,  I  Hke  the  abiding  consistency  of  our  unchangeable    He  reaffirms 

position  upon  this  pohcy.    The  Republican  Convention  of  i860,  which    ^■^^^^^^  ^^^Q 

gave  to  the  nation  and  aU  history  the  nomination  of  Lincoln,  made   policy  of 

this  simple  and  ample  utterance:    'That,  while  providing  revenue   ^^^  l^ny. 

for  the  support  of  the  General  Government  by  duties  upon  imports, 

sound  poUcy  requires   such  an  adjustment  of  these  imports  as  to 

encourage  the  development  of  the  industrial  interests  of  the  whole 

country;   and  we  commend  that  policy  of  national  exchanges  which 

secure  to  the  workingmen  liberal  wages,  to  agriculture  remunerating 

prices,  to  mechanics  and  manufacturers  an  adequate  reward  for  their 

skill,  labor,  and  enterprise,  and  to  the  nation  commercial  prosperity 

and  independence.'  .  .  . 

"The  Democratic  party  is  always  conccnied  about  the  American   The  Repub- 

,  ■  c  •         licans  are 

consumer.     Our  Republican  achievement  is  the  making  ot  a  nation   concerned 

of  prospering  producers,  and  by  producers  I  mean  cvcr>'  human   about  pro- 

.  ,  .  ,    ducers,  not 

being  who  applies  muscle  or  skill  or  brain  or  all  to  the  conversion  ot    consumers. 

nature's  abundance  into  the  necessities  and  luxuries  of  fife  or  partic- 
ipate in  the  ways  and  means  of  their  transportation  and  exchange. 
Far  better  a  high  cost  of  living  and  ability  to  buy  than  a  lowering 
of  cost  by  destruction  of  purchasing  capacity.  .  .  . 

"The  nations  abroad  and  the  Democratic  party  at  home  are 


Republican 
tariff  prin- 
ciples are 
being 

accepted  at 
home  and 
abroad. 


402 


READINGS  IN  AMERICAN  DEMOCRACY 


bearing  witness  to  RepubUcan  wisdom.  German  industrial  self- 
reliance  is  the  sequence  of  her  adoption  of  a  Republican  protective 
tariff,  and  England's  manifest  conversion  to  this  fostering  plan  will 
magnify  the  prophetic  wisdom  of  Republican  protectionists.  Even 
the  Democratic  party  is  penitent  now  and  makes  confession  in 
action  if  not  in  words.  ..." 


Difficulty  of 
ascertaining 
the  effect  of 
the  tariff 
upon  na- 
tional pros- 
perity. 


The  pro- 
tective 
policy. 


Our  pros- 
jK-rity  not 
due  to  con- 
tinued pro- 
tection, 
but  to 


174.   Relation  of  the  tariff  to  national  prosperity^ 

From  the  two  foregoing  selections  it  would  appear  that  the  Demo- 
cratic party  believes  the  weU-being  of  the  country  to  depend  rather 
largely  upon  the  maintenance  of  a  relatively  low  tariff,  whUe  the 
Republicans  believe  that  relatively  high  protection  has  been  an  im- 
portant cause  of  our  national  prosperity.  The  large  number  of  fac- 
tors in  industrial  history,  and  the  impossibility  of  measuring  many 
influences  in  our  economic  life,  render  it  impossible  to  say  just  what 
is  the  relation  of  the  tariff  to  national  prosperity.  Nevertheless,  it 
is  interesting  to  note  that  a  leading  authority  on  the  tariff,  Professor 
Taussig,  believes  that  there  is  no  definite  relation  between  the  tariff 
and  national  prosperity.     He  says: 

In  the  United  States  a  severely  protective  tariff  was  maintained 
for  half  a  century  after  the  Civil  War.  The  financial  exigencies  of 
the  war  caused  high  duties  to  be  levied,  and  in  subsequent  years 
these  were  retained.  A  rigid  and  all-inclusive  system  of  protection 
grew  up,  and  persisted  without  serious  modification  (barring  a  brief 
reaction  in  1894-97)  until  1913,  when  a  considerable  general  reduc- 
tion was  made. 

The  economic  effects  of  this  system  it  is  impossible  to  follow  em- 
pirically. We  have  seen  that  its  effects  on  the  terms  of  international 
exchange  are  so  interwoven  with  those  of  other  factors  that  no  unravel- 
ing is  possible.  Even  more  baffling  is  the  task  of  following  or  measur- 
ing its  effects  on  general  prosperity.  The  protectionists,  on.  this 
subject  as  on  the  rate  of  wages,  have  preached  and  protested  that 
all  good  things  come  from  their  tariff.  Such  talk  results  naturally 
from  the  exigencies  of  partisan  conflict  and  the  need  of  simple  argu- 


'  From  Frank  William  Taussig,  Principles  of  Economics.    The  Macmillan  Com- 
pany, New  York,  1921.    Vol.  i;  pp.  538-540. 


THE  TARIFF  403 

ments  for  the  mass  of  voters.    So  loud  and  persistent  has  been  the 

talk  that  for  many  persons,  even  for  many  who  are  not  unintelligent 

or  uneducated,  it  has  become  an  article  of  faith  that  the  prosperity 

of  this  country  rests  on  the  protective  tariff. 

Yet  there  is  no  greater  delusion.    A  multitude  of  factors  explain  a  multitude 

our  general  welfare  —  vast  resources,  a  far-spread  division  of  labor   f  "^^'^^ 
.  ,  .       ,  ,  .  ,   .  factors, 

withm  the  country,  a  free,  active,  and  mtcUigent  population.     Has 

not  this  North  American  region  been  for  centuries,  under  all  sorts 

of  economic  and  poHtical  conditions,  the  envy  of  the  world? 

But  to  trace  in  detail  the  part  played  by  any  one  factor  in  pro- 
moting or  retarding  the  enviable  outcome  is  well-nigh  impossible. 
Certain  it  is  that,  so  far  as  the  tariff  is  concerned,  we  must  rely  on 
general  reasoning.  The  first  and  obvious  effect  of  protection  is  to 
turn  industry  into  less  advantageous  channels;  and  there  is,  in  my 
judgment,  no  good  case  to  rebut  this  general  conclusion  and  to  estab- 
hsh  a  balance  of  gain,  from  such  a  tariff  system  as  the  United  States 
has  had  since  the  CivU  War.  .  .  . 

The  extent  to  which  manufacturing  industry  in  the  United  States   The  extent 

is  dependent  on  the  tariff  system  is  vastly  exaggerated  by  the  pro-   ^°  ^  ,' 

tectionists.    One  would  suppose,  from  their  doleful  predictions,  that   ing  depends 

not  a  chimney  would  smoke  but  for  the  tariff.    In  fact,  the  United   "^S  ^  ^ 

•^  '  tanil  IS  ex- 

States  is  certain  to  be  a  great  manufacturing  country  under  any   aggerated 

conditions.     So  much  is  assured  by  its  wonderful  resources  of  coal   J^ .  °!- 

-^  protection- 

and  minerals  and  by  the  ingenuity  and  enterprise  of  its  people.  .  .  .   ists 

But  this  same  consideration  indicates  that  the  free  traders  went   and  free 
too  far  in  ascribing  iU  effects  to  all  the  parts  of  the  protective  system,    traders. 
It  did  not  change  the  course  of  industry  as  far  as  their  charges  im- 
pHed.     The  country  would  be  prosperous,  and  would  have  greatly 
diversified  industries,  without  a  high  tariff  as  certainly  as  with  it. 


Questions  on  the  foregoing  Readings 

1.  Upon  what  instinct  does  international  trade  depend? 

2.  To  what  extent  is  international  trade  regarded  as  different  from 

trade  between  various  regions  in  the  same  country? 

3.  Upon  what  differences  is  permanent  trade  based? 

4.  Illustrate  the  effect  upon  international  trade  of  these  differences. 


404  READINGS  IN  AMERICAN  DE]\IOCRACY 

5.  Why  will  a  country  often  import  a  commodity  which  it  can  pro- 

duce at  home? 

6.  What  would  happen  if  there  were  no  artificial  hindrances  to  the 

exchange  of  products  between  countries? 

7.  Give  two  reasons  for  the  regulation  of  international  trade. 

8.  What  does  the  Constitution  say  as  to  export  taxes? 

9.  Illustrate  the  difference  between  duties  for  revenue,  and  duties 

for  purposes  of  protection. 
ID.    Show  how  a  revenue  tariff  may  afford  some  protection. 

11.  Show  how  a  protective  tariff  may  yield  some  revenue. 

12.  Why  was  a  Tariff  Commission  created  in  1916? 

13.  What  is  the  general  purpose  of  this  Commission? 

14.  What  are  the  duties  of  the  Commission  with  respect  to  the  customs 

administrative  laws? 

15.  Why  does  the  Commission  make  a  study  of  foreign  tariffs? 

16.  What  is  the  third  and  in  some  respects  the  most  important  of  all 

the  duties  of  the  Commission? 

17.  Give  some  of  the  steps  in  the  survey  of  commodities,  as  conducted 

by  the  Tariff  Commission. 

18.  Why  is  it  possible  somewhat  to  predict  the  effects  upon  the  tariff 

of  a  change  in  administration? 

19.  What  type  of  tariff  is  declared  by  the   Democratic  party  to  be 

unconstitutional? 

20.  What  is  the  attitude  of  the   Democratic   party  toward   the   Re- 

publican tariff  policy? 

21.  What,  according  to  the  Democrats,  is  the  relation  between  pro- 

tection and  the  cost  of  living? 

22.  Summarize  the  tariff  principles  of  the   Republican   party  as  ex- 

pressed in  1920. 

23.  Outline  the  position  of  Senator  Harding  in  1920  with  respect  to 

the  tariff. 

24.  How  did  Senator  Harding  reply  to  the  statement  that  the  Demo- 

cratic  party  desires  to  lighten  the  burden  of  the  consumer? 

25.  Why  is  it  difficult  to  ascertain  the  effect  of  the  tariff  upon  national 

prosperity? 

26.  Explain  the  conclusions  of  Professor  Taussig  on  this  point. 


CHAPTER   XXX 
CONSERVATION 

175.   Why  conservation  of  natural  resources  is  necessary  ^ 

In  the  earUer  decades  of  our  national  history,  the  abundance  of 
land,  minerals,  forests  and  other  natural  resources  was  so  great  that 
they  were  used  generously  and  even  lavishly.  To  a  considerable 
extent  such  use  was  economically  justified;  nevertheless  the  shortage 
of  these  resources  has  recently  called  attention  to  the  need  of  con- 
serving them.  The  conservation  movement  began  toward  the  close 
of  the  last  century,  but  until  after  1900  made  relatively  Httle  headway. 
Reahzing  the  urgency  of  the  problem,  President  Roosevelt  in  igoS 
called  a  Conference  of  Governors  of  the  states  and  territories  of  the 
United  States  to  consider  this  important  question.  On  May  13, 
1908,  the  President  opened  the  Conference  with  an  address  to  the 
governors  and  other  guests,  speaking,  in  part,  as  follows: 

I  welcome  you  to  this  Conference  at  the  White  House.  You  have 
come  hither  at  my  request,  so  that  we  may  join  together  to  consider 
the  question  of  the  conservation  and  use  of  the  great  fundamental 
sources  of  wealth  of  this  nation.  .  .  . 

This  Conference  on  the  conservation  of  natural  resources  is  in 
effect  a  meeting  of  the  representatives  of  all  the  people  of  the  United 
States  called  to  consider  the  weightiest  problem  now  before  the 
nation;  and  the  occasion  for  the  meeting  Hes  in  the  fact  that  the 
natural  resources  of  our  country  are  in  danger  of  exhaustion  if  we 
permit  the  old  wasteful  methods  of  exploiting  them  longer  to  con- 
tinue. .  .  . 

In  Washington's  time  anthracite  coal  was  knowTi  only  as  a  useless 
black  stone;    and  the  great  fields  of  bituminous  coal  were  undis- 


The  conser- 
vation 
movement 
made  little 
headway 
until  Presi- 
dent Roose- 
velt called 
a  Confer- 
ence of 
Governors 
in  1908. 


President 
Roosevelt 
welcomes 
the  dele- 
gates. 

Importance 
of  conserva- 
tion. 


1  From  the  Conference  of  Governors  in  the  White  House,  Washington,  D.  C, 
May  13-15,  1908.    Proceedings.    Washington,  1909;   pp.  3,  5-8. 

405 


4o6 


READINGS  IN  AMERICAN  DEMOCRACY 


The  situa- 
tion in 
Washing- 
ton's day. 


Significance 
of  the  rapid 
development 
of  the 
United 
States. 


The  great 
material 
question  of 
to-day. 


Rapid  ex- 
haustion of 
resources. 


covered.  As  steam  was  unknown,  the  use  of  coal  for  power  production 
was  undreamed  of.  Water  was  practically  the  only  source  of  power, 
save  the  labor  of  men  and  animals;  and  this  power  was  used  only 
in  the  most  primitive  fashion.  But  a  few  small  iron  deposits  had 
been  found  in  this  country,  and  the  use  of  iron  by  our  countrymen 
was  very  small.  Wood  was  practically  the  only  fuel,  while  the  forests 
were  regarded  chiefly  as  obstructions  to  settlement  and  cultivation. 
The  man  who  cut  down  a  tree  was  held  to  have  conferred  a  service 
upon  his  fellows.  .  .  . 

Since  then  our  knowledge  and  use  of  the  resources  of  the  present 
territory  of  the  United  States  have  increased  a  hundredfold.  In- 
deed, the  growth  of  this  nation  by  leaps  and  bounds  makes  one  of 
the  most  striking  and  important  chapters  in  the  history  of  the  world. 
Its  growth  has  been  due  to  the  rapid  development,  and  alas,  that  it 
should  be  said!  to  the  rapid  destruction,  of  our  natural  resources. 
Nature  has  supplied  to  us  in  the  United  States,  and  still  supplies 
to  us,  more  kinds  of  resources  in  a  more  lavish  degree  than  has  ever 
been  the  case  at  any  other  time  or  -with  any  other  people.  Our 
position  in  the  world  has  been  attained  by  the  extent  and  thorough- 
ness of  the  control  we  have  achieved  over  Nature;  but  we  are  more, 
and  not  less,  dependent  upon  what  she  furnishes  than  at  any  previous 
time  of  history  since  the  days  of  primitive  man.  .  .  . 
_  The  wise  use  of  all  of  our  natural  resources,  which  are  our  national 
resources  as  well,  is  the  great  material  question  of  to-day.  I  have 
asked  you  to  come  together  now  because  the  enormous  consumption 
of  these  resources,  and  the  threat  of  imminent  exhaustion  of  some 
of  them,  due  to  reckless  and  wasteful  use  .  .  .  calls  for  common 
effort,  common  action.  .  .  . 

This  nation  began  with  the  belief  that  its  landed  possessions 
were  illimitable  and  capable  of  supporting  aU  the  people  who  might 
care  to  make  our  country  their  home;  but  already  the  limit  of  un- 
settled land  is  in  sight,  and  indeed  but  httle  land  fitted  for  agricul- 
ture now  remains  unoccupied,  save  what  can  be  reclaimed  by  irriga- 
tion and  drainage  —  a  subject  with  which  this  Conference  is  partly 
to  deal.  We  began  with  an  unapproached  heritage  of  forests;  more 
than  half  of  the  timber  is  gone.  We  began  with  coal  fields  more 
extensive  than  those  of  any  other  nation  and  with  iron  ores  regarded 


CONSERVATION  407 

as  inexhaustible,  and  many  experts  now  declare  that  the  end  of  both 
iron  and  coal  is  in  sight.  .  .  . 

We  have  become  great  in  a  material  sense  because  of  the  lavish  The  time 
use  of  our  resources,  and  we  have  just  reason  to  be  proud  of  our    ^'^^  ^"^^ 
growth.    But  the  time  has  come  to  inquire  seriously  what  will  happen    vadon"^' 
when  our  forests  are  gone,  when  the  coal,  the  iron,  the  oil,  and  the  gas 
are  exhausted,  when  the  soils  shall  have  been  still  further  impover- 
ished and  washed  into  the  streams,  polluting  the  rivers,  denuding 
the  fields,  and  obstructing  navigation.     These  questions  do  not  re- 
late  only  to   the   next   century  or   to   the    next   generation.     One 
distinguishing  characteristic  of  reaUy  civilized  men  is  foresight;    we 
have,  as  a  nation,    to  exercise  foresight  for   this  nation  in  the  fu- 
ture;   and  if  we  do  not   exercise  that  foresight,  dark  will  be  the 
future!     |^ Applause.]  .  .  . 

176.   Declaration  of  the  Conference  of  Governors  ^ 
During  the  three  days  of  the  Conference  of  Governors  numerous   The  com- 

papers  and  discussions  on  the  subject  of  conservation  were  offered.   ™'"'^*;.°" 
'^^  '^  •"  resolutions 

On  the  last  day  of  the  conference,  the  committee  on  resolutions   submits  a 
submitted   a  declaration  which  was  unanimously  adopted  by  the     ^^aration. 
members  of  the  Conference  as  embodying  their  conclusions  on  the 
question  of  conservation.     This  declaration  was  as  follows: 

We,  the  Governors  of  the  States  and  Territories  of  the  United  Our  pros- 
States,  in  conference  assembled,   do  hereby  declare  the  conviction    p|!"jent^' 
that  the  great  prosperity  of  our  country  rests  upon  the  abundant    upon 
resources  of  the  land  chosen  by  our  forefathers  for  their  homes  and   ^.gaith 
where  they  laid  the  foundation  of  this  great  nation. 

We  look  upon  these  resources  as  a  heritage  to  be  made  use  of  in    Resources 
establishing  and  promoting  the  comfort,  prosperity,  and  happiness    wasted. 
of  the  American  people,   but  not   to  be  wasted, .  deteriorated,   or 
needlessly  destroyed. 

We  agree  that  our  country's  future  is  involved  in  this;  that  the 
great  natural  resources  supply  the  material  basis  on  which  our  civi- 
Hzation  must  continue  to  depend,  and  on  which  the  perpetuity  of 
the  nation  itself  rests. 

1  From  the  Conference  of  Governors  in  the  White  House,  Washington,  D.  C, 
May  13-15,  1908.    Proceedings.    Washington,  1909;  pp.  192-194. 


4o8 


READINGS  IN  AMERICAN  DEMOCRACY 


These  re- 
sources 
threatened 
with  ex- 
haustion. 


Necessity 
of  coopera- 
tion. 


Measures 
recom- 
mended. 


The 

President 

commended. 


We  agree,  in  the  light  of  facts  brought  to  our  knowledge,  and 
from  information  received  from  sources  which  we  can  not  doubt, 
that  this  material  basis  is  threatened  with  exhaustion.  Even  as  each 
succeeding  generation  from  the  birth  of  the  nation  has  performed 
its  part  in  promoting  the  progress  and  development  of  the  Republic, 
so  do  we  in  this  generation  recognize  it  as  a  high  duty  to  perform 
our  part;  and  this  duty  in  large  degree  lies  in  the  adoption  of  meas- 
ures for  the  conservation  of  the  natural  wealth  of  the  country. 
[^Applause.] 

We  declare  our  firm  conviction  that  this  conservation  of  our 
natural  resources  is  a  subject  of  transcendent  importance,  which 
should  engage  unremittingly  the  attention  of  the  nation,  the  states, 
and  the  people  in  earnest  cooperation.  These  natural  resources 
include  the  land  on  which  we  live  and  which  yields  our  food;  the 
living  waters  which  fertilize  the  soil,  supply  power,  and  form  great 
avenues  of  commerce;  the  forests  which  yield  the  materials  for  our 
homes,  prevent  erosion  of  the  soil,  and  conserve  the  navigation  and 
other  uses  of  our  streams;  and  the  minerals  which  form  the  basis 
of  our  industrial  life,  and  supply  us  with  heat,  light,  and  power. 

We  agree  that  the  land  should  be  so  used  that  erosion  and  soil- 
wash  shall  cease;  that  there  should  be  reclamation  of  arid  and  semi- 
arid  regions  by  means  of  irrigation,  and  of  swamp  and  overflowed 
regions  by  means  of  drainage;  that  the  waters  should  be  so  conserved 
and  used  as  to  promote  navigation,  to  enable  the  arid  regions  to  be 
reclaimed  by  irrigation,  and  to  develop  power  in  the  interests  of  the 
people;  that  the  forests  which  regulate  our  rivers,  support  our 
industries,  and  promote  the  fertility  and  productiveness  of  the 
soil  should  be  preserved  and  perpetuated;  that  the  minerals  found 
so  abundantly  beneath  the  surface  should  be  so  used  as  to  prolong 
their  utility;  that  the  beauty,  healthfulness,  and  habitability  of 
our  country  should  be  preserved  and  increased;  that  the  sources 
of  national  wealth  exist  for  the  benefit  of  the  people,  and  that 
monopoly  thereof  should  not  be  tolerated.     [Applause.] 

We  commend  the  wise  forethought  of  the  President  in  sounding 
the  note  of  warning  as  to  the  waste  and  exhaustion  of  the  natural 
resources  of  the  country,  and  signify  our  high  appreciation  of  his 
action  in  calling  this  conference  to  consider  the  same  and  to  seek 


CONSERVATION  409 

remedies  therefor  through  cooperation  of  the  nation  and  the  states. 
[Applause.] 

We  agree  that  this  cooperation  should  find  expression  in  suitable   The  call 
action  by  the  Congress  within  the  limit  of  and  coextensive  with  the    *^?''  '^'^p^''^- 

Uon. 
national  jurisdiction  of  the  subject,  and,  complementary  thereto, 

by  the  legislatures  of  the  several  states  within  the  limits  of  and 

coextensive  with  their  jurisdiction. 

We  declare  the  conviction  that  in  the  use  of  the  natural  resources 
our  independent  states  are  interdependent  and  bound  together  by 
ties  of  mutual  benefits,  responsibiUties  and  duties.    [Applause.]  .  .  . 

Let  us  conserve  the  foundations  of  our  prosperity.  [Great  Ap- 
plause.] ... 

177.   A  National  Conservation  Association  formed  ^ 

The  Conference  of  Governors  recognized  that  effective  direction   Need  of  a 

of  the  conservation  movement  would  necessitate  a  national  organiza-   coordinating 

agency  in 
tion  to  coordinate  the  numerous  forces  involved  in  the  movement,    conservation 

The  outcome  of  this  feehng  was  the  appointment  of  a  National    [^^^^^^^j^^^*^ 

Conservation  Commission,   which  prepared  the  first  inventory  of   of  the 

our  natural  resources  which  was  ever  made.     This  commission  was   Cons"rv!itioa 

short-lived,  but  the  need  for  some  coordinating  organization  was    Association. 

increasingly  great.     To  meet  this  need  a  group  of  public-spirited 

citizens  in  1909  organized  the  National  Conservation  Association, 

the  nature  and  aims  of  which  are  explained  in  the  following  selection: 

The  National  Conservation  Association  is  fighting  for  the  prompt   what  the 
and  orderly  development  of  our  natural  resources,  for  the  welfare   j^'^J^Jf^g" 
of  ourselves  and  our  children,  and  for  the  rights  of  the  plain  people,    for. 
The  Association  is  bound  neither  by  political   considerations   nor 
official  connections.     It  is  free  to  speak  the  whole  truth. 

That  conservation  means  the  use  of  our  natural  resources  for 
the  benefit  of  us  all  and  not  merely  for  the  profit  of  a  few  is  already 
household  knowledge.  The  task  which  the  National  Conservation 
Association  has  set  itself  is  to  get  this  principle  put  into  practical 

effect.  .  .  . 

The  headquarters  of  the  Association  are  in  Washington.    Central 

1  From  the  National  Conservation  Association,  Publicity  pamphlet  entitled 
National  Conservation  Association,  What  It  Is.    Washington,  1909. 


4IO 


READINGS  IN  AMERICAN  DEMOCR.\CY 


The  organ- 
ization of 
the  Asso- 
ciation. 


Appointment 
of  collab- 
orators. 


What  the 
Association 
is  doing. 


offices  are  necessary,  and  Washington,  as  the  seat  of  the  Federal 
Government,  is  the  best  place  for  them.  But  it  is  reaUzed  that  to 
take  the  fullest  advantage  of  its  opportunity  for  national  service, 
the  .\ssociation  must  do  its  work  not  merely  from  and  in  Washington, 
but  in  the  closest  possible  touch  with  the  friends  of  conservation 
and  the  local  questions  which  confront  them  throughout  the  United 
States.  To  this  end  the  Association  is  uniting  in  effort  with  other 
organized  bodies,  state  and  individual,  which  stand  for  conserva- 
tion. ...  By  organized  leadership  in  the  conservation  movement 
the  Association  brings  to  the  wise  settlement  of  local  conservation 
questions,  by  legislation  or  otherwise,  the  prompt  support  of  other 
forces  enUsted  in  the  fight  for  conservation. 

Another  exceedingly  effective  method  followed  by  the  Association 
for  increasing  its  field  of  usefulness  is  through  the  appointment  of 
collaborators  for  towns  and  cities.  These  local  representatives  of 
the  Association  are  men  and  women,  prominent  in  the  conservation 
movement,  who  are  willing  to  give  their  own  time  and  effort  in  act- 
ing as  sources  from  which  is  spread  a  knowledge  of  the  work  and 
purpose  of  the  Association.  .  .  . 

Through  these  agencies  and  through  its  counsel  the  Association 
is  keeping  watch  upon  all  legislation  within  the  conservation  field. 
It  is  drafting  and  recommending  both  to  Congress  and  to  state  legis- 
latures good  laws  for  conserving  our  natural  resources.  Through 
its  bulletins  the  Association  is  teUing  its  members  promptly  and  plainly 
when  and  how  to  strike.  These  bulletins  deal  simply  and  without 
reservation  with  conservation  measures  pending  or  proposed.  If 
a  bill  promotes  conservation  the  Association  will  tell  the  truth  about 
it,  no  matter  who  its  author  may  be  or  what  interests  are  behind  it. 

The  influence  of  the  Association  upon  legislation  is  already  making 
itself  felt.  But  its  work  has  only  begun.  Only  if  the  friends  of  con- 
servation stand  shoulder  to  shoulder  can  that  work  be  finished  in 
time. 

178.   The  principles  ot  conservation  ^ 
If  the  resources  of  the  nation  are  really  to  be  conserved,  we  shall 
have  to  do  something  more  than  draw  up  or  formulate  mere  state- 

'  From  the  National  Conservation  Association,  Statement  of  Principles.     Wash- 
ington, 1909. 


CONSERVATION  411 

ments  of  principles;  on  the  other  hand,  the  magnitude  and  complexity  importance 

of  the  problem  render  it  necessary  to  get  principles  and  issues  cleariy  '^^  '^''^^'''y 

in  mind  before  specific  legislation  is  advocated.     It  is,  therefore,  principles 

important  to  formulate  and  summarize  the  principles  which  ought  ^*  *  prelude 

to  govern  conservation.      One  of  the  most  concrete  statements  of  work.^^'''^'"' 
principles  is  that  of  the  National  Conservation  Association,  formu- 
lated in  1909.     This  statement  is  as  follows: 

[The  following  measures  are  important]:  p 

The  protection  of  the  source  waters  of  navigable  streams,  through  measures 

the  purchase  or  control  by  the  nation  of  the  necessary  land  within  mended  by 

their  drainage  basins,  especially  in  the  southern  Appalachians  and  ^^'^  National 

the  White   Mountains.  Conser^•ation 

Association 
The  enactment  and  enforcement,  both  by  the  nation  and  by  the   ^'"''^  respect 

several  states,  of  effective  laws  to  prevent,  by  active  patrol  during    ^°   °'^^^^''' 

dry  weather,   and  by  other  appropriate  means,   the  spreading  of 

fire  in  all  forests,  whether  publicly  or  privately  owoied. 

The  reasonable  but  effective  public  regulation  of  timber  cutting 
on  forest  land,  whether  publicly  or  privately  owned,  the  conservation 
of  which  is  essential  to  the  public  welfare. 

The  separation,  for  purposes  of  taxation,  of  the  timber  from  the 
land  on  which  it  grows,  so  that  the  forest  crop  shall  be  taxed  only 
when  it  is  harvested,  while  the  land  shall  be  taxed  every  year. 

The  support  and  extension  of  practical  forestry. 

The  preparation,  by  a  commission  appointed  by  the  President  waters, 
of  the  United  States,  of  a  comprehensive  plan  for  waterways  im- 
provement, extending  to  all  the  uses  of  the  waters  and  the  benefits 
to  be  derived  from  their  control,  including  navigation,  with  the 
relation  of  railroads  and  terminals  thereto,  the  development  and 
disposition  of  water  power,  the  irrigation  of  arid  lands,  the  drainage 
of  swamp  and  overflowed  lands,  the  control  of  floods,  the  prevention  of 
soil  wash,  and  the  purification  of  streams  for  water  supply. 

[The  inclusion,  in  all  future  grants  of  water  power  rights,  of  pro- 
visions which  will  adequately  protect  the  rights  of  the  state  and 
nation.]  .  .  . 

The  support  and  extension  of  the  irrigation  of  arid  lands  and  the   lands, 
drainage   of   swamp   and   overflowed   lands. 

The  directing  of  public  attention  to  the  need  for  preserving  the 


412  READINGS  IN  AMERICAN  DEMOCRACY 

fertility  of  our  soils,  and  thus  protecting  the  future  food  supply  of 
our  people. 

The  enactment  of  legislation  whereby  the  title  to  the  surface  of 

public  lands  and  to  the  minerals  therein  shall  be  granted  separately, 

with  every  appropriate  facility  to,  miners  to  acquire  such  part  of 

the  surface  as  may  be  needed  in  the  development  of  their  claims. 

The  conservation  and  control  of  the  unappropriated  pubUc  range 

lands  by  the  government  in  the  interests  of  the  stockman  and  home 

maker,  and  subject  at  all  times  to  homestead  entry. 

and  The  retention  by  the  government  of  the  title  to  all  lands  still 

minerals.         j^  pubUc  ownership  which  contain  phosphate  rock,  coal  oil,  or  natural 

gas,  and  the  development  of  the  same  by  private  enterprise,  under 

conditions  that  wUl  prevent  extortion  and  waste. 

The   enactment   of   appropriate   legislation   to   prolong   our   coal 
supply,  to  reduce  waste  in  mining,  and  to  establish  sufficient  safe- 
guards against  the  loss  of  Kfe  in  mines.  .  .  . 
The  measures       The  foregoing  enumeration  is  intended  to  indicate   the  general 

enumerated      character  of  some  of  the  measures  which  this  organization  believes 
above  do  ° 

not  exhaust     should  be  adopted  to  carry  the  principles  of  conservation  into  practi- 

!h    \^^         ^^^  effect.    It  will,  however,  cooperate  in  every  appropriate  way  with 

ciation.  Other  organizations  and  with  the  state  and  national  officials  to  cover 

the  entire  field  of  the  conservation  and  development  of  our  natural 

resources,  and  to  bring  to  this  cooperation  the  vigorous  support  of 

an  intelligent  and  disinterested  citizenship. 

179.   The  legal  basis  of  conservation  ^ 

Importance  An  important  element  in  the  conservation  movement  is  the  legal 
basis  "^of*^^^  "^^'^  °^  ^'-^'-^  governments  to  regulate  privately-owned  natural 
conservation,  resources  within  their  borders.  Wishing  this  phase  of  the  situation 
to  be  clearly  defined,  the  Senate  of  the  State  of  Maine  in  1907  sub- 
mitted to  the  Supreme  Court  of  the  commonwealth  certain  ques- 
tions as  to  the  right  of  the  legislature  to  check  and  prevent  the  un- 
economical use  of  privately  owned  resources.  The  opinion  of  the 
Court  was  that  the  property  rights  of  the  individual  are  subordinate 

'  Questions  submitted  by  the  Senate  of  the  State  of  Maine  to  the  justices  of 
the  Supreme  Judicial  Court  of  Maine,  March  27,  1907,  with  the  answers  of  the 
justices  thereon.     (103  Maine,  506.) 


CONSERVATION 


413 


to  the  rights  of  the  community,  and  that  the  waste  of  privately  Opinion  of 
owned  resources  may  properiy  be  prevented  by  state  legislation.  ^^''  '^^'''"^ 
Some  extracts  from  the  opinion  of  the  Court  follow:  Coun™*^ 

We  find  that  the  legislature  has,  by  the  constitution,  "full  power   Preliminary 
to  make  and  establish  all  reasonable  laws  and  regulations  for  the   statement 
defense  and  benefit  of  the  people  of  this  state,  not  repugnant  to  this   power  of 
constitution  nor  that  of  the  United  States."    It  is  for  the  legislature   ^^^  ^^^^' 
to  determine  from  time  to  time  the  occasion  and  what  laws  and 
regulations  are  necessary  or  expedient  for  the  defense  and  benefit 
of  the   people;    and   however  inconvenienced,   restricted,   or  even 
damaged  particular  persons  and  corporations  may  be,  such  general 
laws  and  regulations  are  to  be  held  valid  unless  there  can  be  pointed 
out  some  provision  in  the  state  or  United  States  Constitution  which 
clearly  prohibits  them.  .  .  . 

CWith  regard  to  the  status  of  private  property  rights,  we  refer  to 
the  opinion  of  Chief  Justice  Shaw,  expressed  as  follows]: 

"We  think  it  a  settled  principle,  growing  out  of  the  nature  of  well-    Private 

ordered  civil  society,  that  every  holder  of  property,  however  abso-   i"<li\"'duals 

lute  and  unqualified  may  be  his  title,  holds  it  under  the  implied  lia-   use  their 

biUty  that  his  use  of  it  may  be  so  regulated  that  it  shall  not  be  injurious   P''<^p^'^>'  '" 

"^  such  a  way 

to  the  equal  enjoyment  of  others  having  an  equal  right  to  the  enjoy-   as  to  injure 
ment  of  their  property,  nor  injurious  to  the  rights  of  the  community.    ^^  u^^^^ 
All  property  in  this  commonwealth  ...  is  derived  directly  or  in-   community, 
directly  from  the  government  and  held  subject  to  those  general 
regulations  which  are  necessary  for  the  common  good  and  general 
welfare.     Rights  of  property,  Hke  all  other  social  and  conventional 
rights,  are  subject  to  such  reasonable  limitations  in  their  enjoyment 
as  shall  prevent  them  from  being  injurious,  and  to  such  reasonable 
restraints  and  regulations  estabhshed  by  law  as  the  legislature,  under 
the  governing  and  controlling  power  vested  in  them  by  the  consti- 
tution, may  think  necessary  and  expedient.  ..." 

There  are  two  reasons  of  great  weight  for  applying  [^a]  strict  con-   WTjy  the 
struction  of  the  constitutional  provision  to  property  in  land:  control  "and 

First,  such  property  is  not  the  result  of  productive  labor,  but  is   limit  the 

derived  solely  from  the  state  itself,  the  original  owner;  "^  '^ 

-'  o  ^  pnvate 

Second,  the  amount  of  land  being  incapable  of  increase,  if  the   property, 
owners  of  large  tracts  can  waste  them  at  will  without  state  restric- 


Conclusion 
of  the 
Court. 


414 


READINGS  IN  AMERICAN  DEMOCRACY 


tion,  the  state  and  its  people  may  be  helplessly  impoverished  and  one 
great  purpose  of  government  defeated.  .  .  . 

The  foregoing  considerations  lead  us  to  the  opinion  [that  the  leg- 
islature of  the  state  of  Maine  has  the  power  to  enact  legislation  de- 
signed to  prohibit,  restrict,  or  regulate  the  utilization  of  privately 
owned  natural  resources,  where  such  prohibition,  restriction  or 
regulation  is  necessary  to  the  protection  of  the  pubhc  interest.] 


Much  has 
been  done, 
but  much 
more  re- 
mains to 
be  done. 


Federal 
legislation 
needed  with 
respect  to 
fire  pro- 
tection and 
forest 
renewal, 


the  ex- 
tension anfl 
consfilidation 
of  Federal 
forest 
holdings. 


180.   Needed  conservation  legislation  ^ 

Since  the  historic  Conference  of  Governors  in  1908,  the  movement 
for  the  conservation  of  natural  resources  in  the  United  States  has 
become  national  in  scope.  Notable  progress  has  been  made  toward 
conserving  forests,  water  power,  land,  and  minerals.  Nevertheless, 
the  conservation  movement  is  still  in  its  infancy,  and  the  amount  of 
work  to  be  done  greatly  exceeds  the  amount  already  accompHshed. 
In  the  conservation  of  forests,  for  example,  much  progress  has  been 
made,  yet  this  phase  of  the  movement  is  retarded  by  the  lack  of  help- 
ful legislation.  In  1920  the  Forest  Service  in  the  United  States  De- 
partment of  Agriculture  summed  up  the  need  for  legislation  on 
forest  conservation  as  follows: 

Legislation  is  needed  .  .  .  which  will  enable  the  Forest  Service 
to  assist  the  respective  states  in  fire  protection,  methods  of  cutting 
forests,  reforestation,  and  the  classification  of  lands  as  between  tim- 
ber production  and  agriculture.  It  should  carry  an  initial  annual 
appropriation  of  not  less  than  $1,000,000,  expendable  in  cooperation 
with  the  states,  with  a  proviso  that  the  amount  expended  in  any 
state  during  any  year  shall  not  exceed  the  expenditures  of  the  state 
for  the  same  purposes.  ... 

Legislation  is  needed  .  .  .  which  will  permit  the  rapid  enlarge- 
ment of  the  national  forests  and  the  consolidation  of  existing  forest 
units  for  more  effective  administration.     This  legislation   should: 

(a)  Continue  the  purchase  of  forest  or  cut-over  lands,  as  initiated 
under  the  Weeks  Act,  with  annual  appropriations  of  at  least  $2,- 
000,000. 

•  From  the  United  States  Department  of  Agriculture,  Department  Circular  112, 
Timber  Depletion  and  the  Answer.     Washington,  June,  1920;   pp.  10-16. 


CONSERVATION  415 

(b)  Authorize  the  Secretary  of  Agriculture  to  exchange  national 
forest  land,  timber,  or  transferrable  timber  certificates  for  private 
timbered  or  cut-over  land  within  or  adjoining  existing  national 
forests. 

(c)  Withhold  from  any  form  of  aUenation,  except  under  the  mineral 
laws,  all  lands  now  in  government  ownership  or  control  but  not  em- 
braced in  national  forests  or  national  parks,  including  canceled 
patents  or  grants,  unreserved  pubUc  lands,  and  Indian  and  military 
reservations,  which  are  valuable  chiefly  for  the  production  of  timber 
or  protection  of  watersheds,  and  all  lands  of  similar  character  here- 
after revested  in  or  acquired  by  the  United  States;  and  authorize  the 
President  upon  recommendation  of  the  National  Forest  Reservation 
Commission,  or  otherwise,  to  incorporate  such  lands  in  national 
forests.  .  .  . 

The  current  appropriations  of  the  Forest  Service  should  provide   reforestation 

for  the  progressive  reforestation  of  denuded  lands  in  national  forests   °^  denuded 

Federal 
to  be  completed  m  not  more  than  20  years,  with  a  yearly  sum  begin-   lands, 

ning  at  $500,000  and  increasing  to  $1,000,000  as  soon  as  the  work 

can  be  organized  on  that  scale.  .  .  . 

Legislation  carrying  a  moderate  appropriation   is  needed  which   and  the 

will  authorize  the  Secretary  of  Agriculture  to  study  the  effects  of   f  "'^^  °^ 

the  existing  tax   methods  and  practices  upon  forest   devastation,    ation  and 

to  devise  model  laws  on  forest  taxation,  and  to  cooperate  with  state   '"surance. 

agencies  in   promoting   their  adoption.      [Forest   insurance  should 

also  be  studied.] 

I^The  following  state  legislation  on  forests  is  recommended]:        State 
State  laws  should  provide  for  the  organized  protection  of  all  forest        j^i'°".u 

lands  in  the  state,  during  periods  of  fire  hazard,  the  protected  areas   respiect  to 

to  include  all  cut-over  and  unimproved  land  as  well  as  bodies  of     ''•^  p''^- 

•^  vention  and 

timber.  The  protective  system  should  include  patrols  during  dry  reforestation, 
weather,  lookout  stations,  fire  breaks  and  roads  where  effective, 
and  organized  fire-fighting  forces.  .  .  .  PoHce  regulations  for  the 
control  of  fire  during  dry  periods  in  connection  with  railroad  or  in- 
dustrial operations  near  forest  land,  land  clearing  or  slash  disposal, 
hunting,  etc.,  and  for  the  control  of  incendiarism,  form  an  essential 
feature  of  the  protective  system. 

State  laws  should  establish  the  responsibility  of  owners  of  forest 


4l6  READINGS   IN  AMERICAN  DEMOCRACY 

land  for  complying  with  such  equitable  requirements  as  may  be 
determined  upon  and  promulgated  by  the  proper  state  agency, 
dealing  with  precautions  against  forest  fires,  the  disposal  of  slashings, 
methods  of  cutting  timber  or  of  extracting  particular  forest  prod- 
ucts, such  as  naval  stores  or  pidpwood,  and  such  other  equitable 
requirements  as  the  authorized  state  agency  shall  determine  upon 
as  necessary  to  prevent  devastation.  .  .  . 
and  state  Supplementing   the  policy  of   forest   acquisition   by  the   Federal 

and  munici-  government,  every  state,  including  states  in  the  prairie  region, 
should  acquire  forest  land  or  lands  adapted  to  tree  growth  and 
provide  systematically  for  the  planting  of  such  areas  as  will  not 
otherwise  restock  with  timber  of  valuable  species.  .  .  .  State  laws 
should  encourage  the  acquisition  of  forest  lands  by  municipalities, 
to  the  end  that  public  forest  ownership  may  be  extended  by  any 
agencies  capable  of  undertaking  it.  .  .  . 


Questions  on  the  foregoing  Readings 

1.  In  what  period  of  our  history  did  the  conservation  movement 

begin? 

2.  What  important  step  toward  conservation  was  taken  by  President 

Roosevelt  in  1908? 

3.  What  problem  was  considered  by  the  Conference  of  Governors? 

4.  Compare  the  use  of  natural  resources  in  the  days  of  Washington 

with  their  use  in  recent  times. 

5.  When  is  conservation  necessary?  Why? 

6.  What  did  the   committee    on    resolutions   of    the   Conference  of 

Governors  say  as  to  the  need  of  cooperation  in  the  conservation 
question? 

7.  What  remedial  measures  were   recommended   by  this  committee? 

8.  What  service  was  performed  by  the  National  Conservation  Com- 

mission? 

9.  Why  was  the  National  Conservation  Association  formed? 

10.  What  is  this  association  fighting  for? 

11.  Outline  the  organization  of  the  association. 

12.  What  is  the   relation   between   the   formulation   of   principles   of 

conservation  and  remedial  legislation? 

13-  Outline  the  conservation  measures  recommended  by  the  National 

Conservation  Association  with  respect  to  forests. 

14-  What  measures  were  recommended  with  respect  to  water? 

15-  What  measures  were  recommended  with  respect  to  land? 


CONSERVATION  417 

16.  What  measures  were  recommended  with  respect  to  minerals? 

17.  What  is  the  importance  of  determining  the  legal  status  of  con- 

servation? 

18.  What  did  the  Maine  Supreme  Court  say  as  to  the  general  powers 

of 'the  state  legislature? 

19.  What,  in  the  opinion  of  the  Court,  are  two  reasons  why  the  public 

may  control  and  limit  the  use  of  private  property? 

20.  What  was  the  conclusion  of  the  Court  with  respect  to  the  power 

of  the  legislature  to  control  the  use  of  natural  resources? 

21.  Outline  some  needed  Federal  legislation  with  respect  to  fire  pro- 

tection and  forest  renewal. 

22.  Outline  some  needed  Federal  legislation  with  respect  to  the  ex- 

tension and  consolidation  of  Federal  forest  holdings. 

23.  What  Federal  legislation  is  needed  with  respect  to  the  reforestation 

of  denuded  lands? 

24.  Outline  the  state  legislation  needed  with  respect  to  fire  prevention 

and  reforestation. 

25.  What   recommendations  are  made  by  the  United  States  Forest 

Service  with  respect  to  needed  legislation  on  state  and  munic- 
ipal forests? 


CHAPTER  XXXI 


Importance 
of  the 
commercial 
bank. 


The  gold- 
smith who 
is  becoming 
a  banker 
notices  that 
some  of  the 
deposits  are 
not  called 
for, 


and  so 
decides  to 
put  these 
out  on 
short-time 
loans. 


CREDIT   AND   BANKING 

181.   The  function  of  the  commercial  bank^ 
There  are  many  types  of  financial  agencies  in  any  modem  in- 
dustrial community,  but  probably  the  most  important  of  these  is  the 
commercial  bank.     During  the  last  few  decades,   an  increasingly 
large  amount  of  the  nation's  business  has  been  carried  on  with  the 
help  of  this  agency.     Professor  H.  G.  Moulton  has  tried  to  explain 
the  rise  of  the  commercial  bank  by  the  story  of  the  goldsmith.     In 
former  times,  people  with  surplus  money  began  the  practice  of  leav- 
ing their  funds  with  the  goldsmith,  and  drawing  out  sums,  as  they 
needed  them,  by  means  of  checks.     Professor  Moulton  continues: 
Every  day  people  present  orders  or  checks  drawn  by  the  different 
depositors  against  their  respective  accounts.     To  my  surprise,  [the 
goldsmith  is  speaking]  I  learn  that  about  three  times  out  of  four 
the  man  who  presents  the  order  does  not  withdraw  cash,  but  instead 
asks  for  a  credit  account  with  me  against  which  he  can  draw  checks 
when   he  \vishes   to    make    payments.      Everybody   remarks    how 
much  more  convenient  and  how  much  less  risky  it  is  when  one  does 
not  have  to  transfer  the  actual  money. 

I  ponder  over  the  fact  that  only  once  in  four  times  does  anyone 
ask  for  cash.  I  have  $100,000  with  which  to  pay  $100,000  in  claims 
against  me,  but  I  am  never  called  upon  to  pay  more  than  $25,000  at 
one  time.  Why  not,  therefore,  loan  $75,000  at  interest  and  increase 
my  profits?  I  try  this  and  find  that  my  ability  to  pay  $100,000  is 
not  impaired  so  long  as  I  make  short-time  loans  of  a  kind  that  are 
sure  to  be  paid  promptly  when  they  fall  due.  So  long  as  only  one 
dollar  in  four  is  called  for  in  cash,  a  25  per  cent  reserve  of  specie  is 
all  that  is  necessary. 
Finally  I  get  a  new  idea.    Instead  of  loaning  $75,000  of  my  cash, 

•  From  the  United  States  Department  of  the  Interior,  Bureau  of  Education. 
Lessons  in  Community  and NationalLife.   Washington,  1918.    Series  A;  pp.  189-192. 

418 


CREDIT  AND   BANKING  419 

why  not  plan  to  keep  the  whole  $100,000  as  a  reserve  and  ,  .  ,  create  The  business 
claims  against  me  equal  to  $400,000?  I  try  out  this  idea.  I  loan  '^  expanded. 
$300,000  to  business  men.  I  give  them  credit  accounts  against  mc, 
and  for  the  sake  of  convenience  they  write  checks  against  these 
accounts  rather  than  withdraw  the  actual  money  when  they  wish  to 
make  payments.  I  find  that  the  people  who  receive  the  checks  are 
no  more  desirous  of  taking  away  cash  than  were  the  people  with 
whom  I  dealt  before.  Now,  as  formerly,  one-fourth  of  the  checks 
are  presented  for  cash  and  three-fourths  are  deposited  with  me  as 
credit  accounts.  Thus  I  carry  a  total  of  $400,000  and  need  only 
$100,000  actual  cash  with  which  to  pay.  Since  most  people  pre- 
fer a  credit  account  I  am  able  to  meet  all  claims  with  my  cash 
reserve  of  25  per  cent  of  my  outstanding  accounts. 

Commercial  banks  to-day  make  loans  to  business  men  amounting   The  function 

to  billions  of  dollars  annually.     These  loans  are  mainly  for  short   °^  ^^'^    .  , 

commeraal 

periods,   and  business  men  use  them  largely  for  working  capital   bank, 
rather  than  for  plants  and  equipment.     The  modern  business  man- 
ager .  .  .  borrows   funds  on  short   time  with  which   to   buy  raw 
materials  for  manufacture  and  stocks  of  merchandise  for  sale.     It 
is  the  function  of  the  commercial  bank  to  furnish  this  working  capital. 

In  the  loaning  of  funds  the  banker  has  to  exercise  a  great  deal  The  banker 

of  judgment.     If  he  loans  to  business  men  who  are  inefficient,  or   ^f  ^  ^"  ^^ 
•'      °  of  business 

dishonest,  or  engaged  in  Unes  of  business  which  are  speculative  activities, 
in  their  nature,  he  may  find  that  his  loans  are  not  repaid  at  the  date 
of  maturity.  There  may  be  heavy  losses  involved,  which  reduce 
the  banker's  profits.  Even  slow  payments  are  looked  upon  with 
disfavor  by  the  banker  because  his  ability  to  expand  his  own  obU- 
gations  as  described  above  depends  largely  upon  the  certainty  and 
promptness  with  which  his  debtors  pay  him.  The  banker  there- 
fore makes  a  careful  study  both  of  the  borrower  and  of  his  busi- 
ness before  a  loan  is  granted.  .  .  . 

182.    Our  banking  system  before  1913  ^ 

Since  Civil  War  days  the  basis  of  our  financial  organization  has 

been  the  national  banking  system.    This  system  was  highly  defective 

1  From  the  National  Citizens'  League  for  the  Promotion  of  a  Sound  Banking 
System,  Banking  Reform.  The  National  Citizens'  League,  etc.,  Chicago,  19 12; 
pp.  7-9,  12. 


420 


READINGS  IN  AMERICAN  DEMOCRACY 


Before  igi3 
our  banking 
system  was 
highly 
defective. 


Before  1913, 
small  banks 
customarily 
redeposited 
a  large 
share  of 
their  reserves 
in  larger 
banks. 


Extent  of 
this  practice. 


Inter- 
dependence 
of  the  banks 


until  amended  by  the  Federal  Reserve  Act  of  1913.  Prior  to  1913 
the  great  majority  of  national  banks  were  national  in  name  only. 
Except  for  the  rather  loose  association  of  the  banks  in  the  clearing 
houses  of  our  principal  cities,  most  of  these  banks  were  independent 
units,  each  working  for  itself.  There  was  Httle  teamwork.  The 
banks  were  sufficiently  dependent  upon  one  another  to  render  one 
sensitive  to  the  financial  condition  of  other  institutions,  but  there 
was  no  adequate  method  by  which  the  strong  banks  in  the  system 
could  extend  aid  to  banks  temporarily  embarrassed.  This  important 
point  was  developed  in  the  191 2  report  of  the  National  Citizens' 
League  for  the  Promotion  of  a  Sound  Banking  System,  as  follows: 

Under  the  terms  of  the  National  Banking  Act,  no  bank  is  per- 
mitted to  establish  branches.  [This  was  written  in  191 2,  before 
the  passage  of  the  Federal  Reserve  Act.]  Every  bank  is  presumably 
an  independent  institution.  .  .  .  Country  banks  are  required  to 
hold  a  reserve  equal  to  15  per  cent  of  their  outstanding  UabiUties, 
and  may  re-deposit  nine  per  cent  of  it  with  reserve  city  banks. 
They  thus  retain  in  their  own  vaults,  at  the  minimum,  cash  equal 
to  only  six  per  cent  of  their  outstanding  Habilities.  The  reserve 
city  banks  [in  turn]  ...  are  required  to  hold  a  reserve  equal  to  25 
per  cent  of  their  outstanding  Habilities,  [but]  may  re-deposit  one- 
half  of  this  .  .  .  with  banks  in  central  reserve  cities.  .  .  . 

As  a  matter  of  fact  the  banks  have  availed  themselves  of  this 
reserve  provision  very  extensively,  and  much  of  the  present  so- 
called  reserves  consists  not  of  cash  in  their  vaults  but  of  deposits 
in  other  banks  in  reserve  cities.  At  a  recent  date  of  report  to  the 
Comptroller  of  the  Currency,  about  551  millions  of  dollars  represented 
the  total  reserve  held  by  country  banks,  while  of  this  sum  only 
246  millions  was  actually  in  the  possession  of  these  banks  in  the 
form  of  lawful  money.  All  the  national  banks  of  the  country  had 
reserves  of  1,404  millions,  of  which  only  862  miUions  was  actual 
lawful  money  in  hand. 

[Thus  the  smaller  banks  are  profoundly  interested  in  the  condi- 
tion of  the  banks  in  which  they  have  deposited  a  large  share  of  their 
reserves.  To  the  latter]  they  look  for  the  resources  which  will  enable 
them  to  fill  up  their  own  reserves  in  times  of  sudden  demand  for 
payment.    To  them  they  look  for  accommodation   through  direct 


CREDIT  AND   BANKING  421 

ioans,  or  through  the  discounting  of  paper,  or  through  some  one  of 
the  various  methods  which  are  employed  for  granting  reUef  to  the 
smaller  institutions  when  the  stronger  and  larger  banks  are  in  posi- 
tion to  afford  such  aid. 

Conversely,  the  city  banks  look  with  interest  to  the  outside  insti- 
tutions as  the  source  of  deposits  which  they  expect  to  use  in  times 
of  financial  ease  and  slack  business  in  the  country,  for  the  purpose  of 
facilitating  transactions  in  the  cities  and  general  financial  operations. 

[Thus  the  banks  are  intimately  connected  with  one  another,  in  fact,   Distress 

they  are  inter-dependent,  so  that  the  distress  of  one  bank  may  afifect  f*^''  ,*^"^ 

...  "^  bank  may 

all  of  the  banks  with  which  it  has  business  relations.     The  difficulty  mean 

is  that  these  banks,  though  inter-dependent,  have  no  way  of  helping  ^'^^'■^^^ 

one  another  when  the  distress  of  one  threatens  to  work  a  hardship 

on  other  institutions.]     The  larger  banks  have  scanty  means  of 

knowing  the  details  of  one  another's  affairs  and  no  means  at  all  of 

enforcing    their   own   ideas  upon   one   another   in  any  case.    The 

smaller  banks,  while  to  an    extent  overseen  and  influenced  by  the 

larger,  are  not  in  touch  with  one  another  or  able  to  judge  of  the 

movement  of  credit  in  the  operations  of  the  other  institutions.  .  .  . 

,  The  fundamental  defect  of  the  national  banking  system  is  fthat   J    ,        ,  , 

^     •>  •-  fundamental 

it  is]  a  series  of  banks  artificially  grouped.    Because  of  the  lack  of  defect  in  oui 

cooperative  or  fundamental  relationships  between  the  institutions,     ^y  "S 
'^  ^  system  prior 

it  is  not  possible  for  them  to  exercise  any  general  policy  with  reference  to  1913. 
to  the  control  of  reserves,  the  fixing  of  rates  of  discount,  or  the  grant- 
ing of  loans.  They  can  only  act  independently  of  one  another,  and 
the  well-conducted  institutions  must,  therefore,  suffer  from  the 
mistakes  of  others  whose  conduct  tends  to  arouse  suspicion  or  alarm 
in  the  mind  of  the  public.  Because  of  this  situation,  it  will  be  seen, 
the  national  banking  system  as  at  present  conducted  is  in  a  sense 
a  breeder  of  panics,  while  it  fails  entirely  to  grant  any  adequate 
reUef  from  these  'commercial  convulsions.  .  .  . 

183.  The  panic  of  1907  ^ 

If  we  confine  our  attention  to  the  defect  brought  out  in  the  pre- 
ceding selection,  it  will  be  seen  that  an  important  objection  to  our 

*  From  the  National  Monetary  Commission,  History  oj  Crises  uitder  the  National 
Banking  System.    Washington,  1910;  pp.  253-256,  258-259. 


Panics  in 
.\merican 
histoo'  prior 
to  1913- 


Runs  upon 
three  New 
York  banks 
in  October, 
1907. 


Money 

becomes 

tight. 


Pressure 
upon  the 
clearing- 
house banks 


422  READINGS  IN  AMERICAN  DEMOCRACY 

banking  system  prior  to  1913  was  this:  the  banks  were  dependent 
upon  one  another,  but  such  dependence  was  unsafe  because  of  the 
lack  of  any  machinery  which  would  enable  the  banks  effectively 
to  help  one  another  in  time  of  stress.  Several  notable  panics  have 
illustrated  this  weakness  of  the  old  national  banking  system.  The 
failure  of  the  national  banking  system  to  meet  emergency  situations 
during  the  panic  of  1907  is  described  by  Professor  O.  M.  W.  Sprague 
in  the  following  selection: 

On  Wednesday,  October  23  [1907],  a  run  began  on  the  Trust 
Company  of  America  [New  York  City],  the  second  of  the  trust 
companies  in  size,  having  deposits  of  $64,000,000.  .  .  .  The  company 
■vv-ithstood  a  run  which  continued  for  two  weeks,  during  which  it 
paid  out  some  $34,000,000;  on  Wednesday  and  Thursday  paying 
$12,000,000  and  $9,000,000.  The  Trust  Company  of  America  and 
also  the  Lincoln  Trust  Company,  upon  which  a  run  began  on 
Thursday,  were  assisted  .  .  .  [chiefly]  because  it  was  clear  that 
the  foundation  of  the  entire  credit  structure  was  endangered.  The 
steps  taken,  however,  were  slow  and  the  means  adopted  were  not 
sufficiently  clear  in  import  to  restore  general  confidence.  .  .  . 

During  the  three  days  of  heavy  runs  upon  the  trust  companies 
New  York  was  threatened  with  a  general  panic,  and  a  number  of 
other  trust  companies  experienced  runs  of  varying  degrees  of  severity. 
A  few  small  mismanaged  banking  institutions  in  the  outskirts  of 
the  city  were  forced  to  suspend.    Depositors  began  to  withdraw  money 
from  savings  banks,  and  [the  latter]  were  obliged  to  exercise  their 
right  to  require  sixty  days'  notice.   Loans  could  be  secured  only  with 
extreme  difficulty  and  the  fall  in  stock  exchange  prices  .  .  .  was 
alarmingly  violent.  .  .  .  The  strenuous  efforts  that  were  made  to 
reUeve  the  situation  were  but   partially  successful,  because  they 
lacked  the  authority  and  backing  of  the  Clearing  House  Associa-. 
tion.    As  in  the  case  of  the  Trust  Company  of  America,  the  rehef 
afforded  was  of  a  piecemeal   character  -ftdthout   any  certainty  of 
its  continuance.  .  .  . 

During  the  three  days  of  heavy  runs  upon  the  trust  companies 
the  strain  upon  the  clearing-house  banks  was  very  severe,  as  they 
had  to  furnish  most  of  the  money  required  by  the  trust  companies, 
whose  reserves  had  been  deposited  with  them.    At  the  same  time  they 


CREDIT  AND   BANKING  423 

were  shipping  money  to  the  interior  banks,  and  they  also  suflcred 

some  loss  from  payments  to  their  own  frightened  depositors.  .  .  . 

Had  New  York  been  a  city  with  only  local  responsibiUties  it  is   Alarm 

probable  that  the  disturbance  would  have  gone  no  further;    but,  as   ^Pi'^^^'^s 

in  1873  and  in  1893,  the  disasters  in  New  York  had  caused  alarm  thrcount'ry. 

to    spread    throughout    the    country.       [There]    came    telegraphic 

demands  from   all  over   the   country,   including   the  other  central 

reserve    cities,    for    the    calling    of    loans    and    the    shipment    of 

currency.  .  .  .  Everywhere  the   banks  suddenly   found   themselves 

confronted  with  demands  for  money  by  frightened  depositors;  every-   Outlying 

where,  also,  banks  manifested  a  lack  of  confidence  in  each  other.   ''^"^^^  ^ 
/^  /•  •  demand 

Country  banks   drew  money  from   city  banks  and   all    the  banks   the  reserves 

throughout  the  country  demanded  the  return  of  funds  deposited   ^''^'^^  ^^^y 

had  do- 
or on  loan  m  New  York.    The  evidence  of  lack  of  confidence  in  and   posited  in 

between  the  banks  is  clear,  and  it  points  to  a  serious  difficulty  in   ^^^  ^^"^ 

,,..,.  York  banks, 

carrying  on  banking  in  this  country.  .  .  . 

184.   The  Federal  Reserve  System  ^ 

Following  the  panic  of  1907,  there  was  widespread  agitation  for   As  a  result 

the  reform  of  our  banking  system.     Banking  systems  in  European   °^  ^^^  P'*"'*^ 

.       ,  of  1907.  the 

countnes  were  investigated,  and  the  defects  of  our  national  bank-   Federal 

ing  system  were  thoroughly  studied.     As  the  result  of  a  great  deal   Reserve 

.  .  .  Act  of  igi3 

of   discussion   and   compromise,    there   was   enacted  on   December   is  passed. 

23,  1913,  the  Federal  Reserve  Act,  which  amended  and  strengthened 
our  national  banking  system.  This  act  marked  a  compromise  be- 
tween a  centralized  and  a  decentralized  system,  i.e.  it  allowed  our 
banking  system  to  remain  decentraUzed,  but  it  guaranteed  some 
of  the  fundamental  advantages  of  a  centrali/ocd  and  coordinated 
banking  system.  The  general  organization  of  this  new  Federal 
Reserve  System  is  described  by  Professor  Sprague  as  follows: 

The  primary  purpose  of  the  Federal  Reserve  Act  of  December  23 ,    Purpose 
1913,  is  to  make  certain  that  there  will  always  be  an  available  sup- 
ply of  money  and  credit  in  this  country  with  which  to  meet  unusual 
banking  requirements.     Banks  of  a  new  class,  to  be  known  as  Federal 
Reserve  Banks,  are  to  be  established,  and  upon  these  banks  is  to 

1  From  the  Quarterly  Journal  of  Economics,  Vol.  xxvTn.    February,  1914-    O.  M. 
W.  Sprague.    "The  Federal  Reserve  Act  of  1913";  PP-  213-215,  223-224,  22&-227. 


424 


READINGS  IN  AMERICAN  DEMOCRACY 


Duties  and 
powers  of 
the  Federal 
Kesen'e 
Banks. 


ICach  Federal 
Reserve 
Bank  a 
central  bank. 


I'rovisions 
f  the  Act 
with  rcKard 
to  meml)er 
hanks. 


rest  the  heavy  responsibility  of  supporting  the  structure  of  credit 
in  periods  of  financial  strain.  The  new  banks  are  expected  to  keep 
themselves  in  a  condition  of  such  strength  in  ordinary  times  that 
the  other  banks  may  safely  rely  upon  them  for  all  needed  cash  and 
credit  in  emergencies. 

In  the  past,  the  banks  in  this  country,  when  subjected  to  financial 
pressure,  have  relied  mainly  upon  loan  contraction  and  the  seUing 
of  securities.  In  the  future  it  is  expected  that  they  will  resort  to 
the  Federal  Reserve  Banks,  securing  additional  funds  from  these 
by  rediscounting  commercial  loans.  .  .  . 

The  Federal  Reserve  Banks  are  to  exercise  wide  powers,  and  would 
seem  likely  to  have  ample  resources.  The  country  is  to  be  divided 
into  not  less  than  eight,  nor  more  than  twelve  districts,  in  each 
of  which  a  Federal  Reserve  Bank  is  to  be  established.  All  national 
banks  are  required,  and  qualified  state  banking  institutions  are  in- 
vited, to  subscribe  to  the  capital  of  the  Reserve  Bank  of  their  district. 

Subscribing  banks,  to  be  known  as  member  banks,  are  required  to 
keep  a  part  of  their  reserve  with  their  Federal  Reserve  Bank.  .  .  . 

[The  Federal  Reserve  Banks]  will  provide  an  elastic  currency, 
issuing  notes  secured  by  their  commercial  assets.  They  are  also 
empowered  to  undertake  the  business  of  collecting  and  clearing 
checks  throughout  the  entire  country,  thus  providing  an  organi- 
zation for  making  settlements  between  banks  in  different  places, 
the  lack  of  which  has  been  one  of  the  most  serious  defects  in  our 
banking  system. 

Each  Federal  Reserve  Bank  will  be  a  central  bank  for  the  section 
of  the  country  which  it  is  to  serve.  It  will  have  all  of  the  responsi- 
bilities and  most  of  the  powers  of  central  banks  in  the  various 
European  countries.  ... 

The  Federal  Reserve  Banks  are  to  receive  deposits  from  the  govern- 
ment and  from  member  banks  only.  Ordinarily  they  will  lend  to 
member  banks  only.  .  .  . 

National  banks  are  required,  and  properly  qualified  state  banks 
are  invited,  to  signify  their  acceptance  of  the  terms  of  the  act.  .  .  . 
Each  national  bank  must  subscribe  to  the  capital  of  the  Reserve 
Bank  of  its  district  an  amount  equal  to  six  per  cent  of  lts_  capital 
and  surplus.  .  .  . 


CREDIT  AND   BANKING  425 

[The  whole  system  is  to  be  supervised  and  controlled  by  the  The  Federal 
Federal  Reserve  Board,]  to  consist  of  seven  members;  the  Sccrc-  '^'•"^■''ve 
tary  of  the  Treasury  and  the  Comptroller  of  the  Currency  ex  officio, 
and  five  members  appointed  by  the  President.  ...  Of  the  five  ap- 
pointed members,  at  least  two  must  be  persons  experienced  in  bank- 
ing or  finance.  Not  more  than  one  shall  be  appointed  from  any  Fed- 
eral Reserve  district,  and  due  regard  is  to  be  given  to  the  different 
commercial,  industrial  and  geographical  divisions  of  the  country. 
The  term  of  office  of  the  appointed  members  is  ten  years;  but  those 
first  selected  are  to  serve  one  for  two,  one  for  four  years,  and  so  on, 
so  that  the  term  of  ofl&ce  of  one  member  may  expire  every  two 
years.  .  .  . 

Organization  of  the  system  will  be  complete  with  the  selection  The  Federal 

of  the  members  of  the  Federal  Advisory  Council.     This  Council  is   '^'^^''^^^p' 

Council 

to  consist  of  as  many  members  as  there  are  Federal  Reserve  districts,  and  its 
the  board  of  directors  of  each  Federal  Reserve  Bank  selecting  one  '"f"^'^'''"- 
member.  The  function  and  powers  of  the  Council  are  purely  con- 
sultative. It  is  to  meet  regidarly  four  times  each  year  at  Washington, 
and  at  other  times  there  or  elsewhere  if  deemed  necessary  by  the 
Council  itself.  It  is  authorized  to  confer  directly  with  the  Federal 
Reserve  Board,  to  call  for  information,  and  make  oral  or  written 
representations  concerning  matters  within  the  jurisdiction  of  the 
Federal  Reserve  Board.  .  .  . 


185.    Centralization  under  the  Federal  Reserve  System  ' 

At  the  time  of  the  panic  of  1907,  the  United  States  had  the  largest   The  Federal 

supply  of  gold  of  any  country  in  the  world.    The  difficulty  was  that    ^'^1^^^^ 

under  the  old  national  banking  system  this  supply  of  gold  was  in-   provides 

effective,  because  widely  scattered.     A  second  difficulty  was  that   j-cntraUzation 

our  reserves  were  not  only  scattered,  but  were  immobile.    There  and  mobility 

was  no  effective  way  of  quickly  gathering  them  together  and  massing  rescr\es. 

them  at  the  points  of  financial  danger.     These  two  difficulties  the 

Federal  Reserve  System  overcomes  by  provision  for,  first,  the  cen- 

traUzation  of   bank   reserves,   and,   second,   the   mobility  of   those 

reserves.    The  following  discussion  of  this  subject  is  by  Dr.  Kcmmcrer: 

>  From  Edwin  Walter  Kemmerer,  The  A  B  C  of  lite  Federal  Reserve  System. 
Princeton  University  Press,  Princeton,  N.  J.,  1920;  pp.  36-42.  48-49- 


426 


READINGS  IN  AMERICAN   DEMOCRACY 


Member 
banks  must 
maintain 
their  entire 
legal  reserve 
in  the 
Federal 
Reserve 
Bank  of 
their  district. 


This  secures 
the  district 
centralization 
of  reserves. 


Mobility  of 
reserves 


between 

different 

Federal 

Reserve 

districts, 


[At  the  present  time]  every  bank,  banking  association  or  trust 
company  belonging  to  the  Federal  Reserve  System  [must]  maintain 
its  entire  legal  reserve  in  the  form  of  a  deposit  at  the  Federal  Reserve 
Bank  of  its  district.  .  .  .  [Thus  commercial  banks  belonging  to  the 
system  no  longer  tie]  up  their  legal  reserve  money  by  depositing  it 
in  the  banks  of  our  money  market  centers,  there  to  be  loaned  out 
at  call  to  speculators  on  the  stock  and  produce  exchanges.  This 
divorcing  of  the  legal  reserves  of  nearly  8,000  commercial  banks  from 
the  speculative  and  capital  loans  of  the  stock  market  ...  is  one 
of  the  big  achievements  of  the  Federal  Reserve  System.  The  Federal 
Reserye  law,  as  amended,  recognizes  only  one  form  of  legal  reserve, 
and  that  is  a  member  bank's   deposit  in  its  Federal  Reserve  Bank. 

Member  banks  may  keep  as  much  or  as  Uttle  cash  on  hand  for 
till  money  as  they  wish  to.  They  may  keep  balances  in  other  banks 
if  it  suits  their  convenience  to  do  so  —  all  that  is  their  own  affair 
for  which  their  responsibility  is  to  their  stock  holders  and  their 
customers  —  but  their  legal  reserve,  the  reserve  which  the  Govern- 
ment looks  upon  as  the  minimum  below  which  the  public  interest 
demands  that  banks  should  not  go,  that  reserve  must  all  be  kept 
on  deposit  in  Federal  Reserve  Banks,  the  nation's  reservoirs  of  re- 
serve money.  .  .  . 

A  corollary  to  the  district  centraKzation  of  reserves  is  their  mobi- 
Uzation.  Reserve  money  must  not  only  be  piped  into  a  few  large 
reservoirs,  but  these  large  reservoirs  must  be  piped  together,  and 
there  must  be  a  pumping  engine  of  sufficient  power  to  force  the 
reserves  promptly  and  in  large  quantities  to  any  place  desired.  The 
Federal  Reserve  System  creates  just  this  machinery.  [It  provides 
for  the  mobiUty  of  reserves,  first,  between  the  different  districts  of 
the  system,  and  second,  between  the  different  member  banks  of  any 
one  district.  Mobility  of  reserves  between  different  Federal  Reserve 
districts  is  provided  for  in  a  number  of  ways,  notably  as  follows:] 

In  case  there  is  an  exceptionally  heavy  demand  for  reserve  money 
m  any  section  of  the  country  —  a  demand  heavier  than  the  banks 
of  that  section  can  reasonably  meet  —  the  reserve  banks  in  other 
sections  where  money  is  more  plentiful  will  come  to  the  rescue, 
either  voluntarily  or  under  compulsion  [by  the  Federal  Reserve 
Board],  and  will  rediscount  the  paper  of  the  reserve  bank  in  the 


CREDIT  AND   BANKING  427 

section  under  financial  stress.  This  process,  of  course,  will  cause 
a  flow  of  cash  from  the  reserves  of  the  former  banks  to  the  reserve 
of  the  latter,  thereby  easing  the  money  market  in  the  threatened 
section.  .  .  .  [Thus]  the  reserves  of  the  twelve  reserve  banks  are 
so  closely  piped  together  .  .  .  that  they  may  reasonably  be  con- 
sidered to  be  closely  connected  tanks  of  a  single  large  reservoir.  .  .  . 

[There  is  also  provision  for  the  mobility  of  reserves   between  the   and  between 

banks  of  a  single  Federal  Reserve  district.]     The  forces  which  act   the  member 

banks  of 
for  the  increasing  mobility  of  reserve  money  wdthin   the  boundaries   any  one 

of  a  Federal  Reserve  district  are  essentially  the  same  as  those  just   J','-'^'^''^' 

•*  Reserve 

explained  for  that  between  districts.  Obviously  [commercial]  paper  district, 
of  wide  acceptability  flows  from  place  to  place  within  a  district  more 
freely  than  paper  whose  merits  are  less  widely  recognized;  and, 
within  a  district  as  between  districts,  the  widely  marketable  paper 
flows  from  the  places  where  the  discount  rates  are  high  and  bank 
funds  scarce,  to  the  places  where  the  rates  are  low  and  funds  are 
more  plentiful.  Furthermore,  the  bank  reserves  of  the  district 
which  have  been  piped  to  the  one  reservoir,  namely,  the  Federal 
Reserve  Bank,  can  be  readily  pumped  to  the  banks  of  any  section 
where  funds  are  in  heavy  demand. 

If  banks  throughout  the  district  were  rediscounting  in  moderate 
sums  with  the  Federal  Reserve  Bank,  and  if  a  sudden  emergency 
should  cause  an  exceptionally  heavy  demand  for  funds  in  any  section, 
the  Federal  Reserve  Bank  could  raise  its  rate  of  discount,  thereby 
reducing  the  rediscount  demands  of  the  banks  less  urgently  in  need 
of  the  funds,  and  could  then  turn  larger  amounts  into  the  sectior 
where  the  demand  was  heaviest.  .  .  . 

186.   Elasticity  under  the  Federal  Reserve  System  ^ 

In  addition  to  providing  for  the  centralization  and  mobility  of  In  addition 

bank  reserves,  the  Federal  Reserve  Act  secures  a  considerable  degree  (-entralization 

of  elasticity.    Elasticity  means  that  the  amount  of  money  or  credit  and  mobility 

wiU  increase  when  a  great  deal  of  business  is  being  transacted,  and  "hcre^r*^*' 

will  decrease  when  business  becomes  slack.    We  have  seen  that  under  elasticity  of 

the  Federal  Reserve  System,  the  reserves  of  the  several  districts  ^^[^^  ^" 

1  From  Edwin  Walter  Kemmerer,  The  A  B  C  of  the  Federal  Reserve  System . 
Princeton  University  Press,  Princeton,  N.  J.,  1920;  pp.  so-S3.  55-s6,  61,  64-65- 


428 


READINGS   IN  AMERICAN  DEMOCRACY 


Bank-note 
currency: 


how  it  may 
be  expanded 


and 
contracted. 


can  be  centralized  and  piped  to  banks  where  they  are  needed;  it 
remains  to  be  pointed  out  that  there  must  be  provision  for  enlarg- 
ing the  amount  of  money  or  credit  when  the  mechanism  of  exchange 
is  called  upon  to  handle  a  great  volume  of  business,  and  that  when 
business  has  subsided  there  must  be  some  way  of  reducing  the  amount 
of  money  and  credit  in  circulation.  Elasticity  under  the  Federal 
Reserve  System  is  explained  by  Dr.  Kemmerer  as  follows: 

[First,  the  elasticity  of  the  bank-note  currency  is  secured  by] 
the  so-called  Federal  Reserve  notes.  These  notes,  which  are  obli- 
gations of  the  United  States  Government,  and  [are  issued  by  the] 
Federal  Reserve  Banks,  have  back  of  them  specifically  pledged  with 
the  Federal  Reserve  agent  to  the  amount  of  loo  per  cent  certain  forms 
of  high-grade  collateral.  .  .  .  Except  under  special  circumstances, 
...  a  gold  reserve  of  not  less  than  40  per  cent  must  be  kept  by 
each  Federal  Reserve  Bank  against  its  outstanding  Federal  Re- 
serve notes.  .  .  . 

As  regards  the  matter  of  elasticity,  these  notes  have  in  a  high  de- 
gree the  quality  of  expansiblUty,  namely,  of  having  their  circula- 
tion easily  increased  in  times  of  need.  If  member  banks  in  a  given 
section  of  the  country  need  an  increased  supply  of  currency  to  meet 
local  demands,  they  may  rediscount  ehgible  paper  with  their  Federal 
Reserve  Bank  and  take  the  proceeds  of  the  rediscounts  in  Federal 
Reserve  notes,  which  pass  readily  as  hand-to-hand  money  and  are 
satisfactory  till  money  for  the  banks.  The  Federal  Reserve  Bank, 
if  its  supply  of  notes  is  inadequate,  secures,  on  application  to  the 
federal  reserve  agent,  additional  notes  by  depositing  with  the  agent 
the  rediscounted  paper  or  other  eligible  paper  in  its  portfolio.  This 
process  may  continue  as  long  as  the  Federal  Reserve  Bank  has  paper 
available  for  deposit  with  the  Federal  Reserve  agent  and  its  gold 
reserve  does  not  fall  below  the  normal  legal  minimum  of  40  per 
cent.  In  case  of  great  emergency,  however,  the  Federal  Reserve  Board 
may  permit  a  reduction  of  the  note  reserve  below  40  per  cent,  provided 
it  imposes  a  graduated  tax  upon  the  amount  of  the  deficiency.  .  .  . 

For  the  purpose  of  contracting  the  circulation  of  Federal  Reserve 
notes  when  the  business  demands  for  currency  decUne,  the  machinery 
is  as  follows.  When  the  demand  for  notes  in  the  pockets  of  the 
people  and  the  tills  of  the  merchants  falls  off,  as  it  does,  say,  after 


CREDIT  AND   BANKING  429 

the  harvesting  season  in  the  autumn,  the  surplus  notes  are  deposited 
by  the  public  in  the  banks.  Inasmuch  as  national  banks  cannot 
count  these  notes  in  their  vaults  as  legal  reserve  money,  they  will 
tend  to  send  to  their  Federal  Reserve  Banks  for  deposit  any  notes 
they  receive  in  excess  of  the  amount  needed  for  till  money.  Notes 
which  were  issued  by  the  Federal  Reserve  Bank  of  the  district  may 
thus  be  withdrawn  from  circulation.  .  .  .  Another  device  calculated 
to  encourage  the  retirement  from  circulation  of  bank  notes  when- 
ever the)'  become  redundant  is  the  provision  of  the  law  authorizing 
the  Federal  Reserve  Board  to  charge  such  a  rate  of  interest  as  it  may 
deem  desirable  on  Federal  Reserve  notes  uncovered  by  gold  or  gold 
certificates  issued   to   Federal   Reserve   Banks.  .  .  . 

The  most  important  device  of  the  Federal  Reserve  System  for  secur-   Deposit 
ing  elasticity  of  deposit  currency,  as  well  as  of  bank-note  currency,    '^'"'^'^'^^ 
is  found  in  the  machinery  enabUng  member  banks  to  borrow  funds 
of  their  Federal  Reserve  Bank.    Funds  so  borrowed,  when  left  on  de- 
posit with  the  Federal  Reserve  Bank,  serve  as  legal  reserve  money  for   how  it  may 
the  member  banks.    The  making  of  such  loans  to  member  banks  is        expanded 
one  of  the  chief  functions  of  Federal  Reserve  Banks.     [Member 
banks  may  secure  these  loans  either  by  rediscounting  eligible  paper 
at  the  Federal  Reserve  Bank  of  their  district,  or  by  borrowing  from 
the    Federal    Reserve    Bank   on   the   security   of    certain   tj'pcs  of 
collateral.]  .... 

The  contraction  of  deposit  currency,  as  soon  as  the  need  for  it  and 
falls  off,  is  brought  about  by  the  pressure  of  high  discount  rates,  contracted, 
to  which  the  pressure  of  the  graduated  tax  is  added.  This  double 
pressure  encourages  borrowers  to  pay  off  their  loans.  This  fact, 
and  the  increasing  restrictions  which  Federal  Reserve  Banks  place 
upon  rediscounts  as  money  market  conditions  become  easier,  tend 
to  contract  the  circulation  of  deposit  currency  and  restore  the  re- 
serves to  a  normal  condition.  .  .  . 

Some  critics  of  the  Federal  Reserve  System  believe  that  the  machiri-  ,\  criticism. 
ery  it  provides  for  contracting  both  deposit  and  bank-note  currency, 
in  times  of  currency  redundancy,  needs  strengthening.  [However 
this  may  be],  there  is  no  question  but  that  the  Federal  Reserve 
System  has  added  greatly  to  the  elasticity  of  both  our  deposit  cur- 
rency and  our  bank-note  currency. 


430  READINGS  IN  AMERICAN   DEMOCRACY 

Questions  on  the  foregoing  Readings 

I.    Explain  the  importance  of  the  commercial  bank. 
3.   Trace  the  steps  by  which  a  banker  discovers  that  he  can  safely 
loan  out  money  left  with  him  for  safe-keeping. 

3.  What  is  the  chief  function  of  the  commercial  bank? 

4.  What  is  meant  by  saying  that  the  banker  must  exercise  a  great 

deal  of  judgment  in  loaning  funds? 

5.  Explain  what  is  meant  by  the  statement  that  before   1913  our 

banking  system  was  a  system  in  name  only. 

6.  To  what  extent  did  the  smaller  banks  formerly  deposit  a  large 

share  of  their  reserves  with  larger  banks? 

7.  Explain  how  this  creates  a  feeling  of  inter-dependence  among  the 

banks. 

8.  Why  was  this  inter-dependence  dangerous? 

9.  Name  a  panic  which  clearly  illustrated  the  defects  of  the  national 

banking  system  as  it  existed  prior  to  1913. 

10.  Trace  the  beginnings  of  financial  distress  in  New  York  during  the 

earlier  part  of  this  panic. 

11.  What  happened  when  alarm  spread  through  the  country? 

12.  Why  was  the  Federal  Reserve  Act  of  1913  passed? 

13.  What  was  the  purpose  of  this  act? 

14.  What,  in  brief,  are  the  duties  and  powers  of  the  Federal  Reserve 

Banks? 

15.  Explain  the  organization  of  the  Federal  Reserve  Board. 

16.  What  is  the  function  of  the  Federal  Advisory  Council? 

17.  Why  must  member  banks  keep  all  of  their  legal  reserve  in  the 

Federal  Reserve  Bank  of  their  district? 

18.  May  they  keep  any  reserves  in  other  banks?     Explain. 

19.  Explain  what  is  meant  by  the  district  centralization  of  reserves. 

20.  Show  how  the  Act  of  19 13  provides  for  the  mobility  of  bank  re- 

serves   between    (a)   different    districts,    and    (b)  between    the 
different  banks  of  a  single  district. 

21.  Why  must  the  supply  of  money  and  credit  be  elastic? 

22.  Show   how    the   bank-note   currency    may   be    (a)  expanded   and 

{b)  contracted  under  the  Act  of  1913. 

23.  How  may  deposit  credit  or  deposit  currency  be  expanded  and 

contracted  under  the  Act? 

24.  What   criticism   has   been   brought   against   the   Federal   Reserve 

System  with  respect  to  the  contraction  of  deposit  and  bank- 
note currency? 


CHAPTER  XXXII 

TAXATION 
187.   Defects  of  American  taxation  ^ 

There  can  be  no  doubt  but  that  discontent  with  our  taxation  Increasing 
system  is  steadily  increasing.       Not  only  is  the  increasing  cost  of   <l'.scontent 
government  demanding  greater  and  greater  revenues,  but  the  failure  taxation 
to  change  our  taxation  pohcies  to  keep  pace  with  the  growing  com-  ^y**^^""- 
plexity  of  our  industrial  Hfe  renders  more  and  more  inadequate 
our  traditional  methods  of  taxation.     In  brief,  more  is  demanded 
of  our  taxation  system  than  ever  before,  but  that  system  is  unable 
to  respond  effectively.     American  taxation  systems  are  highly  de- 
fective, as  Professor  Seligman  points  out  in  the  following  selection: 

What,  then,  are  the  chief  difficulties  in  our  tax  system  which  are   The  eight 
coming  more  and  more  to  be  recognized  everywhere  throughout  the    .*^  ^^\^  ° 
length  and  breadth  of  the  land?    I  should  sum  them  up  under  eight   taxation: 
heads. 

Firsi  and  foremost  is  the  breakdown  of  the  general  property  tax,   d)  the 
which  is  almost  ever>^where  still  the  chief  reUance  of  state  and  local     5^,    ''^^ 
government.    The  general  property  tax  works  well  only  amidst  most   general 
primitive  conditions,  for  which  alone  it  was  calculated.  .  .  .  The   ^^"^^  ^    ^^ 
administration  of  the  general   property  tax  is  everj^where  attended 
with  increasing  difficulty,  and  in  our  large  industrial  centers  it  has 
become,  to  use  the  words  of  a  recent  tax  report,  "a  howling  farce." 

Second,  a  growing  lack  of  equality  in  tax  burdens,  not  only  as   (2)  in- 
between  classes  in  the  community,  but  as  between  indi\aduals  of  the  ^^"^^y^dens 
same  class.  .  .  . 

Third,  the  application  to  general  purposes  of  what  was  intended 

»  From  State  and  Local  Taxation,  First  National  Conference,  November  12-15, 
1907.  Addresses  and  Proceedings.  Edwin  R.  A.  Seligman,  "The  Separation  of 
State  and  Local  Revenues."  The  Macmillan  Company,  New  York,  1908;  pp.  486- 
489. 

431 


432 


READINGS  IN  AMERICAN   DEMOCRACY 


(3)  inade- 
quacy of 
local 
assessment, 


(4)  lack  of 
proper 
corporation 
taxes, 

(5)  the 
franchise 
evil. 


(6)  undue 
burden  on 
the  farmer, 


(7)  inter- 
ference with 
business, 


and  (8)  in- 
adequate 
taxes  on 
Krcat  wealth. 


to  be  only  a  local  revenue.  All  direct  taxation  was  originally  local 
in  character,  and  the  assessment  of  property  for  local  taxation  was 
at  the  outset  a  comparatively  simple  matter.  When  the  need  for 
state  revenues  made  itself  felt,  it  was  obviously  expedient  to  tack 
on  to  this  local  taxation  a  quota  for  general  purposes.  But  with 
the  great  development  of  state  functions,  and  with  the  breakdown 
of  the  local  barriers  of  commerce  and  industry,  what  was  originally 
equal  soon  turned  into  inequality,  and  the  attempt  to  fetter  interlocal 
or  even  interstate  business  conditions  by  the  bonds  of  purely  local 
assessment  has  proved  to  be  a  fruitful  source  of  difficulty. 

Fourth,  the  failure  to  make  modern  corporations  bear  their  fair 
share  of  taxation.  ... 

Fifth,  the  failure  to  secure  adequate  compensation  from  individ- 
uals and  corporations  alike  for  the  franchises  and  privileges  that 
are  granted  by  the  community.  An  earnest  effort  is  being  made  at 
present  throughout  the  length  and  breadth  of  the  land  to  repair 
this  defect.  .  .  . 

Sixth,  the  undue  burden  cast  upon  the  farmer.  Practically,  this 
is  the  problem  of  taxation  in  many  of  our  rural  districts  and  in  aU 
agricultural  communities  where  the  failure  of  an  adequate  revenue 
system  and  of  the  readjustment  of  social  resources  makes  it  impos- 
sible to  secure  good  schools  or  fairly  decent  roads  without  over- 
burdening what  is,  after  all,  the  chief  source  of  American  prosperity. 

Seventh,  the  interference  with  business,  due  to  the  partial  and 
spasmodic  enforcement  of  antiquated  laws.  Witness  the  attempt 
in  some  states  suddenly  to  levy  the  mortgage  tax,  as  recently  in 
New  York,  where  the  entire  building  industry  was  thrown  into  con- 
fusion; or  the  attempt  in  other  states  to  enforce  .  .  .  property 
[taxes]  on  businesses  which  led  to  a  change  in  the  location  of  the 
business  rather  than  to  any  increase  of  revenue.  .  .  . 

Eighth,  the  failure  to  make  great  wealth  contribute  its  due  share. 
In  former  times,  where  property  was  fairly  equally  distributed  and 
conditions  simple,  inequalities  in  tax  burdens  were  slight  and  un- 
perceived.  Before  'the  huge  aggregations  of  modern  wealth,  the 
crude  tax  machinery  of  earlier  days  stands  impotent.  And  yet  we 
hug  ourselves  with  the  delusion  that  all  that  is  necessary  is  to  patch 
up  the  old  machinery,  whereas  what  is  really  needed  is  to  throw  the 


TAXATION  433 

old  machinery  on  the  scrap  heap,  and  lo  utilize  entirely  new  and 
modern  instruments  and  processes. 

188.   Breakdown  of  the  general  property  tax  * 

As  Professor  SeUgman  has  pointed  out  in  the  above  selection,    Failure  of 

the  breakdown  of  the  general  property  tax  is  first  and  foremost         KL-ncral 

property  tax 
among  the  defects  of  American  taxation.  Wherever  extended  in- 
vestigations of  this  tax  have  been  made,  the  conclusion  has  always 
been  that  it  is  thoroughly  inadequate  as  a  source  of  revenue,  and 
that  it  is  unqualifiedly  evil  in  its  effects  upon  both  assessors  and 
taxpayers.  Some  of  the  defects  of  the  general  property  tax  are 
brought  out  in  the  following  extract  from  a  committee  report  to 
the  Fourth  International  Conference  on  State  and  Local  Taxation, 
held  in  Milwaukee,  in   1910: 

There  are  two  reasons  why  the  general  property  tax  has  failed   Two  reasons 

in  operation.     First,   because   under   modern   conditions   it  cannot    "f,  ^  ^  . 
^  '  failure  of 

be  enforced  effectively.    Secondly,  because  of  a  more  or  less  conscious  the  general 
recognition  of  the  fact  that  strict  enforcement  would  result  in  a  still   P^'oP^rty  tax: 
greater  injustice   than  now  prevails. 

[First,  as  to  impracticabihty  of  enforcement^:  (i)  the  im- 

Under  modern  conditions,  much  property  that  is  valuable  to  its   gf^g^fo'^^g.'^^ 
individual  owner  ...  is  in  a  form  that  permits  of  easy  evasion,   ment, 
The  paper  evidences  of  ownership  of  property  which  the  general 
property  tax  system  seeks  to  reach  in  the  hands  of  the  owner,  can 
readily  be  concealed,  or  there  can  be  a  colorable  transfer  of  title. 
Credits  and  debts  can  be  juggled.     Visible  personal  property  can 
be   temporarily  transferred   into  another  district  or  state.     Where 
the  taxpayer  makes  his  own  return,  he  can  undervalue  or  omit  some 
of  his  property.     If  the  assessor  tries  to  inventory  the  property  he 
may  overlook  much  of  it  and  fail  to  estimate  the  value  of  that  which 
he  does  find.  .  .  . 
[Second,  as  to  the  injustice  of  strict  enforcement]:  and  (2)  the 

Public   opinion   ahnost   invariably  recognizes  the   unfairness   of   '^^^?^^ 
taxing  all  property  by  the  same  rule  and  at  the  same  rate,  whenever  enforcement. 

1  From  State  and  Local  Taxation,  Fourth  International  Conference.  .^uRUst  30 
to  September  2,  1910.  Addresses  and  Proceedings.  International  Tax  Association, 
Columbus,  Ohio,  1911;  pp.  307"3io- 


434  READINGS  IN  AMERICAN  DEMOCRACY 

a  strict  enforcement  of  the  law  is  attempted.  The  abstract  demand 
for  the  taxation  of  all  property  ahke  then  gives  place  to  concrete 
indignation  over  the  actual  results.  It  is  always  some  unknown 
"they"  who  ought  to  be  made  to  pay  on  everything  "they"  own. 

But  the  property  which  the  assessor  does  find,  often  is,  in  the 
opinion  of  its  owners,  either  greatly  overvalued,  or  has  been  "singled 
out,"  or  is  otherwise  quite  improperly  on  the  rolls.  This  attitude 
of  the  average  property  owner  is  an  unconscious  resentment  at  the 
unfairness  of  the  general  property  tax  theory.  The  attempt  to  tax 
aU  property  at  a  uniform  standard  of  valuation  and  at  the  same  rate, 
regardless  of  its  special  characteristics,  earning  power,  or  the  bene- 
fits derived  from  the  expenditures  of  government,  violates  the  pri- 
mary rules  of  just  taxation  and  offends  the  natural  sense  of  jus- 
tice. .  .  . 
Conclusions.        To  sum  up,  your  Committee  finds: 

That  the  general  property  tax  system  has  broken  down; 

That  it  has  not  been  more  successful  under  strict  administration 
than  where  the  administration  is  lax; 

That  in  the  states  where  its  administration  has  been  the  most 
stringent,  the  tendency  of  pubhc  opinion  and  legislation  is  not  toward 
still  more  stringent  administration,  but  toward  a  modification  of 
the  system; 

That  the  same  tendency  is  evident  in  the  states  where  the  admin- 
istration has  been  more  lax; 

That  the  states  which  have  modified  or  abandoned  the  general 
property  tax  show  no  intention  of  returning  to  it; 

That  in  the  states  where  the  general  property  tax  is  required  by 
constitutional  provisions,  there  is  a  growing  demand  for  the  repeal 
of  such  provisions. 

We  conclude,  therefore,  that  the  failure  of  the  general  property 
tax  is  due  to  the  inherent  defects  of  the  theory; 

That  even  measurably  fair  and  effective  administration  is  unat- 
tainable; and  that  all  attempts  to  strengthen  such  administration 
serve  simply  to  accentuate  and  to  prolong  the  inequalities  and  unjust 
operation  of  the  system. 


TAXATION  435 

189.   The  taxation  of  corporations  ^ 

There  is  a  widespread  feeling  among  tax  experts  that  under  our   Why  corpo- 
present  laws,  business  corporations  are  not  made  to  bear  their  full   l"^^'""^  ^•'<= 
share  of  the  tax  burden.    The  chief  reason  for  this  feeling  is  that   taxed  "^  ^  ^ 
our  tax  laws  are  largely  the  legacy  of  primitive  conditions,  and  so 
do  not  adequately  weigh  upon  such  recent  developments  as  corporate 
business.    The  corporation  has  recently  become  an  important  source 
of  wealth,  but  our  tax  laws  have  not  yet  taken  general  notice  of  this 
new  source  of  revenue.     Some  of  the  striking  elements  in  this  situa- 
tion are  discussed  in  the  following  extract  from  the  proceedings  of 
a  taxation  conference  held  in  Indiana  in  1910: 

While  in  primitive  society  property  may  be  the  best  available   The  test  of 
test  of  abihty  in  taxation,  the  true  test  is  always  abiUty  and  not   abUh^^"^^ 
property.  .  .  .  The  ability  and  the  duty  of  the  owner  of  property 
to  support  the  government  to  the  same  extent  and  for  the  same  reason 
that  he  supports  himself  and  his  family  is  measured  most  fairly  and 
accurately  by  income  or  productive  abihty. 

As  society  develops,  economic  and  industrial  conditions  become  Significance 
more  complex,  property  and  industr>'  assume  more  varied  forms,  °i  '"°"*'^"^' 
and  the  capacity  of  the  individual  or  corporation  can  no  longer  be 
fairly  determined  merely  by  property  ownership.  Whether  a  person 
is  supporting  his  family  on  a  salary  income  or  from  property  invest- 
ments he  is  equally  able  and  responsible  for  the  support  of  the 
government.  .  .  .  Property,  therefore,  must  be  classified  as  to  its 
form  and  productive  capacity  if  we  are  to  have  a  fair,  uniform  and 
comprehensive  system  of  taxation,  based  on  ability  to  pay  and  uni- 
versal in  its  appUcation.  .  .  . 

The  bulk  of  our  intangible  property,  which  has  generally  escaped   Relation  of 
paying  its  fair  share  of  taxes  and  which  is  increasing  .  .  .  out  of  all   je^.^opment 
proportion   to   other   property  ...  is  invested   or   deposited   with   to  intangible 
corporations.     The  general  tendency  and  natural  effect  of  corporate 
investment  is  to  concentrate  property  for  the  purpose  of  increas- 
ing its  earning  capacity;   thereby  collecting  into  a  relatively  few  or- 
ganizations or  industrial  systems,  practically  all  of  the  intangible, 
together  with  a  large  portion  of  the  tangible,  property. 

1  From  Indiana  University,  Extension  Division,  Proceedings  of  a  Confcreme  on 
Taxation  in  Indiana,  February  5  and  6, 1914.   Bloomington,  Indiana,  1914;  pp.  52-54. 


property. 


436 


READINGS  IN  AMERICAN  DEMOCRACY 


The  proper 
way  of 
taxing 
corpKjrations 
is  to  ignore 
the  stock- 
holders and 
the  actual 
property  of 
the  corpo- 
ration, 


and  to  levy 
upon  the 
income  or 
earning 
capacity  of 
the  corpo- 
ration. 


Conclusion. 


The  small  number  of  corporations  as  compared  to  the  large  numbe 
of  owners  of  their  securities  affords  a  most  compelling  argument 
of  convenienc^e  and  economy  for  the  taxation  of  the  corporation 
rather  than  its  securities  in  the  hands  of  their  numerous  and  widely- 
scattered  owners,  many  of  whom  are  never  found,  so  that  the  por- 
tion who  are  taxed  are  required  to  pay  in  addition  to  their  own 
fair  share  of  taxes  an  even  greater  amount  which  belongs  to  the  own- 
ers of  those  securities  which  are  not  returned,  with  a  resultant  rate 
of  taxation  imposed  on  that  portion  actually  paying,  frequently 
approaching  the  earning  capacity  of  the  security  itself. 

By  taxing  all  such  intangible  property  at  its  source  or  the  place 
of  investment,  the  expense  and  difficulty  of  assessing  and  collecting 
the  tax  would  be  reduced  to  a  minimum  and  the  tax  could  be  practi- 
cally uniformly  levied  and  universally  collected.  ...  In  other  words, 
let  us  take  the  income  or  earning  capacity  of  the  corporation  as  the 
measure  of  its  duty  and  ability  to  pay  taxes  and  not  attempt  the 
impossible  and  inequitable  assessment  of  its  stock  or  property  as 
such,  especially  when  so  much  of  the  property  is  intangible  in  form 
and  so  incapable  of  assessment  except  on  the  basis  of  income  or 
earning  capacity.  .  .  . 

A  tax  on  corporations  measured  by  corporate  income  should  in- 
clude every  subject  of  taxation  that  is  legitimately  taxable  from  the 
economic  point  of  view,  for  income  covers  all  property  and  reflects 
all  value  necessarily  and  properly  belonging  to  the  corporation. 
As  income  or  earning  capacity  determines  the  value  of  the  property 
belongi'ig  to  corporations  and  furnishes  the  best  measure  of  tax- 
paying  abiUty,  why  not  tax  it  as  such,  or  use  it  directly  as  the  measure 
of  value  in  assessing  such  property?  It  is  fixed  and  definite,  not  sus- 
ceptible of  evasion,  easily  and  conveniently  ascertained  at  sHght 
expense  to  the  state  as  well  as  to  the  corporation  itself,  and  furnishes 
a  practical  basis  of  assessment.  .  .  . 


190.   Social  significance  of  taxation  ^ 

There  is  no  more  significant  development  in  recent  tax  discussions 
than  the  proposal  to  use  income  and  inheritance  taxes  as  a  method 

'  From  Theodore  Roosevelt,  Annual  Message  to  Congress,  December  3,  1907. 


TAXATION  437 

of  leveling  the  inequalities  of  wealth.     Not  all  students  of  the  sub-   Growin;^ 
ject  admit  the  desirability  of  taxes  designed  to  level  the  inequalities   ^'-'"dency 
of  wealth,  but  certainly  there  is  no  doubt  but  that  there  is  an  increas-   lo  "evcl^'th? 
ing  tendency  to  use  taxes  for  this  purpose.    In  a  message  to  Congress,   inequalities 
December  3,   1907,  President  Roosevelt  noted  and  approved  this 
tendency  in  the  following  words: 

When  our  tax  laws  are  revised  the  question  of  an  income  tax  and  President 
an  inheritance  tax  should  receive  the  careful  attention  of  our  legis-   Roosevelt 
lators.    In  my  judgment  both  of  these  taxes  should  be  part  of  our   Federd*'^  * 
system  of  Federal  taxation.     I  speak  diffidently  about  the  income   '""^"nie  tax, 
tax  because  one  scheme  for  an  income  tax  was  declared  unconsti- 
tutional by  the  Supreme  Court;    while  in  addition  it  is  a  difficult 
tax  to  administer  in  its  practical  working,  and  great  care  would  have 
to  be  exercised  by  the  very  men  whom  it  was  most  desirable  to  have 
taxed,  for  if  so  evaded  it  would,  of  course,  be  worse  than  no  tax  at  all; 
as  the  least  desirable  of  all  taxes  is  the  tax  which  bears  heavily  upon 
the  honest  as  compared  with  the  dishonest  man.     Nevertheless,  a 
graduated  income  tax  of  the  proper  type  would  be  a  desirable  feature 
of  Federal  taxation,  and  it  is  hoped  that  one  may  be  devised  which 
the  Supreme  Court  will  declare  constitutional.^ 

The  inheritance  tax,  however,  is  both  a  far  better  method  of  tax-  as  well  as  a 

ation,  and  far  more  important  for  the  purpose  of  having  the  fortunes   ^'^^^'^^^  f^^ 

on  inhent- 
of  the  country  bear  in  proportion  to  their  increase  in  size  a  cor-   ances. 

responding  increase  and  burden  of  taxation.  The  Government  has 
the  absolute  right  to  decide  as  to  the  terms  upon  which  a  man  shall 
receive  a  bequest  or  devise  from  another,  and  this  point  in  the  devolu- 
tion of  property  is  especially  appropriate  for  the  imposition  of  a  tax. 
Laws  imposing  such  taxes  have  repeatedly  been  placed  upon  the 
national  statute  books  and  as  repeatedly  declared  constitutional 
by  the  courts.  .  .  . 

These  principles  are  recognized  already  in  the  leading  civilized  The  inherit- 
nations  of  the  world.    In  Great  Britain  all  the  estates  worth  S5.000  I'"."  ^^"^  '* 

being  used 
or  less  are  practically  exempt  from  death  duties,  while  the  increase   in  European 

is  such  that  when  an  estate  exceeds  five  millions  of  dollars  in  value   countries, 

1  Since  the  above  message  was  written,  an  amendment  to  the  Federal  Consti- 
tution has  been  passed,  permitting  the  levy  of  a  Federal  income  tax  directly  upon 
the  people.  —  Editor. 


438 


READINGS  IN  AMERICAN   DEMOCRACY 


and  ought 
to  be  ap- 
plied by  our 
Federal 
Government. 


Social 
significance 
of  heavy 
taxes  on 
large 
fortunes. 


and  passes  to  a  distant  kinsman  or  stranger  in  blood  the  Government 
receives  all  told  an  amount  equivalent  to  nearly  a  fifth  of  the  whole 
estate. 
[Similar  taxes  are  applied  in  France  and  Germany.] 
There  is  no  reason  why  in  the  United  States  the  National  Govern- 
ment should  not  impose  inheritance  taxes  in  addition  to  those  imposed 
by  the  states,  and  when  we  last  had  an  inheritance  tax  about  one- 
half  of  the  states  levied  such  taxes  concurrently  with  the  National 
Government,  making  a  combined  maximum  rate,  in  some  cases  as 
high  as  25  per  cent.  .  .  . 

A  heavy  progressive  tax  upon  a  very  large  fortune  is  in  no  way 
such  a  tax  upon  thrift  or  industry  as  a  like  tax  would  be  on  a  small 
fortune.  No  advantage  comes  either  to  the  country  as  a  whole  or 
to  the  individuals  inheriting  the  money  by  permitting  the  trans- 
mission in  their  entirety  of  the  enormous  fortunes  which  would  be 
affected  by  such  a  tax;  and  as  an  incident  to  its  function  of  revenue 
raising,  such  a  tax  would  help  to  preserve  a  measurable  equaUty 
of  opportunity.  .  .  .  Our  aim  is  to  recognize  what  Lincoln  pointed 
out :  The  fact  that  there  are  some  respects  in  which  men  are  obviously 
not  equal,  but  also  to  insist  that  there  should  be  an  equaUty  of  self- 
respect  and  of  mutual  respect,  and  equahty  of  right  before  the  law, 
and  at  least  an  approximate  equality  in  the  conditions  under  which 
each  man  obtains  the  chance  to  show  the  stuff  that  is  in  him  when 
compared   to   his   fellows.  ... 


The  real- 
ization of 
the  defects 
of  American 
taxation 
has  been 
followed  by 
piecemeal 
reform. 


191.   Need  of  thorough  study  of  the  tax  problem  ^ 

A  study  of  American  taxation  reveals  two  widespread  tendencies: 
In  the  first  place,  there  is  an  increasing  tendency  for  tax  experts 
and  tax  officials  ever5rwhere  to  admit  that  American  taxation  is  highly 
defective.  In  the  second  place,  there  is  a  more  or  less  definite  tend- 
ency to  attack  the  tax  problem  by  advocating  specific  reforms. 
Many  states  have,  in  this  way,  solved  important  phases  of  the  tax 
problem,  and  yet  the  conviction  is  growing  that  the  tax  problem  is 
so  compHcated  and  so  fundamental  that  it  cannot  properly  be  solved 

'  From  Indiana  University,  Extension  Division,  Proceedings  of  a  Conference  on 
Taxation  in  Indiana,  February  5  and  6,  1914.  Blooiiungton,  Indiana,  1914; 
pp.  163-165. 


TAXATION  439 

with<jut  a  wholesale  reorganization  of  the  tax  system.  The  neces- 
sity of  approaching  this  reorganization  through  a  state-wide  survey  of 
the  whole  field  of  taxation  is  set  forth  in  the  following  address  by 
Mr.  John  A.  Lapp  before  the  1914  conference  on  taxation  in  Indiana: 

One  thing  is  evident,  that  is,  that  we  cannot  settle  this  problem   But  the 
by  piecemeal.    It  must  be  taken  in  its  complete  aspects.    It  must  be  P''°''''-"'"  "^ 

.    .  ,        ,  ,  taxation 

solved  as  a  umt  m  order  that  the  system  shall  be  comprehensive  and   cannot  be 

at  the  same  time  honest  and  fair.     If  we  want  to  get  that  sort  of  a   ^l"'*-*^  ^^ 
,  ,  .,..,,.  piecemeal. 

system,  we  cannot  depend  upon  mdividual  mitiative,  either  of  private 

citizens  or  of  pubhc  officials.    Nor  can  we  depend  upon  the  unaided 

efforts  of  the  General  Assembly.    Each  man,  whether  he  be  a  private 

citizen  or  an  office  holder,  has  many  more  problems  to  consider  and 

can  give  only  a  minimum  of  time  to  the  thought  and  effort  which  are 

necessary  to  work  out  the  matter  to  its  final  analysis. 

We  must  depend,  therefore,  upon  some  organization,  or  somebody   Need  of  a 
working  exclusively  and  efficiently  to  the  end  of  collecting,  analyzing,   fhof^^K"  . 
and  setting  forth  the  main  facts  which  must  underlie  the  solution  of   of  the 
this  problem.     The  work  requires  long  study.     It  requires  expert   ^"°J'^'^^- 
assistance.     It  requires  the  opinions  of  men  in  every  walk  of  Ufe, 
and  it  requires  that  all  the  facts  shall  be  gathered  together  and  set 
forth  in  such  manner  that  out  of  the  facts  may  come  a  logical  and 
complete  system  of  taxation.  .  .  .  We  shall  need  a  special  investi- 
gation representing  all  classes  of  people  who  are  concerned  with  this 
problem,  who  shall  be  appointed  for  reasons  of  knowledge,  experience 
and  interest  in  working  out  from  the  accumulated  experience  of 
this  and  other  states  an  adequate  and  fair  system  of  taxation  for 
the  State  of  Indiana. 

Such  an  investigation  must  be  thorough,  or  else  it  might  better  importance 
not  be  had.  A  partial  solution  of  the  problem  is  not  what  we  are  °^  ^'^'*- 
after.  Nothing  short  of  a  full  survey  and  a  practical  and  complete 
working  plan  of  taxation  will  satisfy  the  state  permanently.  .  .  . 
We  do  not  want  to  substitute  some  different  system  of  taxation  just 
merely  because  it  is  different.  We  want,  rather,  to  comprehend  and 
solve  the  whole  problem,  but,  most  of  all,  we  want  to  make  the  people 
of  the  state  comprehend  it.  The  best  system  cannot  be  adopted,  nor 
will  it  work,  unless  the  people  have  been  educated  to  its  purposes, 
and  are  willing  to  educate  themselves  to  its  administration. 


440 


READINGS  IN  AMERICAN  DEMOCRACY 


Groups 
which  ought 
to  be  repre- 
sented on  a 
lax  com- 
mission. 


The  results 
of  the  in- 
vestigation 
must  not  be 
concealed, 


but  must 
reach  the 
people. 


This  investigation  must  be  fairly  representative  of  men  of  all  the 
classes  that  are  interested.  Such  a  commission,  I  should  think, 
should  be  composed  of  a  representative  of  the  tax-paying  class.  .  .  . 
We  ought  to  have  a  representative  from  the  business  interests  of  the 
state,  and  a  representative  of  agriculture,  and  above  all  we  ought  to 
have  a  representative  from  the  State  Tax  Board  itself,  which  is  charged 
with  the  duty  of  administering  the  law,  and  is  familiar  with  all  the 
details  and  defects  in  the  actual  administration  of  the  law  of  the 
state.  We  also  need  men  who  will  look  at  the  thing  from  a  large  stand- 
point, men  who  will  look  at  it  from  the  standpoint  of  the  professor 
of  poUtical  economy,  if  you  will.  ... 

Such  a  body  as  that  —  and  I  just  merely  suggest  an  outHne  — 
could  investigate  the  subject  for  Indiana.  ...  I  have  seen  a  great 
many  investigations  in  this  state  and  other  states  which  surveyed 
the  facts  in  certain  fields.  After  the  facts  were  gotten  they  were 
quietly  concealed  in  ponderous  volumes  or  in  the  offices  of  the  Capitol, 
or  in  some  other  place.  The  people  did  not  get  hold  of  the  facts. 
They  did  not  have  a  chance  to  study  them.  ... 

[This  is  the  wrong  way  to  do  things.]  We  must  take  everybody 
into  our  confidence.  We  must  try  to  educate  everybody  on  this 
subject;  and  when  we  have  done  that  ...  I  dare  say  we  will  come 
to  the  conclusion  .  .  .  that  we  ought  to  have  a  comprehensive  change 
in  the  tax  system  in  Indiana;  that  no  matter  how  good  the  system 
of  taxation  may  have  been  a  few  years  ago,  it  is  not  adequate  at 
the  present  time,  and  it  is  not  adequate  for  the  rapidly  changing 
future.  ... 


192.    Some  principles  of  taxation  ^ 

Importance  In  the  Study  of  taxation,  nothing  is  more  important  than  a  firm 

grasp  of  the    S^sp  of  the  basic  principles  which  underhe  a  sound  taxation  system, 
fundamental    The  development  of  new  objectives  in  taxation,  and  the  increase  in 
uxaUon"  °      ^^^  number  of  factors  involved  in  the  problem,  have  not  been  with- 
out their  effect  upon  taxation  ideals.     Nevertheless,  there  are  certain 
basic  principles  which  are  still  vital,  and  which  under  any  system 
of  taxation  ought  seriously  to  be  taken  into  account.     No  one  has 

»  From  Adam  Smith,  An  Inquiry  into  the  Nature  and  Ca^ises  of  the  Wealth  o] 
Nations.    London,  1776.    Book  v,  Chapter  n,  Part  n. 


TAXATION  441 

more  aptly  expressed  these  principles  than  Adam  Smith,   writing 

a  century  and  a  half  ago,  as  follows: 

Before  I  enter  upon  the  examination  of  particular  taxes,   it  is   The  four 

necessary  to  premise  the  four  following  maxims  with  regard  to  taxes   P'"'nc'Pl<-'s  of 

,  taxation: 

m  general. 

1.  The  subjects  of  every  state  ought  to  contribute  toward  the  sup-  (,)  the  pay- 
port  of  the  government,  as  nearly  as  possible,  in  proportion  to  their  '"'■'"^  "^ 
respective  abilities;    that  is,  in  proportion  to  the  revenue  which  ins  to 
they  respectively  enjoy  under  the  protection  of   the  state.     The  ^'^'I'^y- 
expense  of  government  to  the  individuals  of  a  great  nation  is  like 

the  expense  of  management  of  the  joint  tenants  of  a  great  estate, 
who  are  all  obHged  to  contribute  in  proportion  to  their  respective 
interests  in  the  estate.  .  .  . 

2.  The  tax  which  each  individual  is  bound  to  pay  ought  to  be    (2)  a  tax 

certain,  and  not  arbitrary.     The  time  of  payment,  the  manner  of   ""^^^  ^°  ^ 

certain  and 
payment,  the  quantity  to  be  paid,  ought  all  to  be  clear  and  plain   not 

to  the   contributor  and  to  every  other  person.  .  .  .  arbitrary. 

3.  Every  tax  ought  to  be  levied  at  the  time,  or  in  the  manner,    (3)  a  tax 

in  which  it  is  most  likely  to  be  convenient  for  the  contributor  to  pay   ^^^}^\  ^°  ^^ 

levied  so  as 

it.    A  tax  upon  the  rent  of  land  or  of  houses,  payable  at  the  same   to  suit  the 
term  at  which  such  rents  -are  usually  paid,  is  levied  at  the  time  when   convenience 
it  is  most  likely  to  be  convenient  for  the  contributor  to  pay;    or,   contributor, 
when  he  is  most  likely  to  have  wherewithal  to  pay.     Taxes  upon 
such  consumable   goods   as  are   articles   of   luxury,  are  all   finally 
paid  by  the  consumer,  and  generally  in  a  manner  that  is  very  con- 
venient for  him.    He  pays  them  by  Uttle  and  little,  as  he  has  occasion 
to  buy  the  goods.    As  he  is  at  liberty  too,  either  to  buy,  or  not  to  buy, 
as  he  pleases,  it  must  be  his  own  fault  if  he  ever  suffers  any  consider- 
able inconveniency  from  such  taxes. 

4.  Every  tax  ought  to  be  so  contrived  as  both  to  take  out  and  to    (4)  a  tax 
keep  out  of  the  pockets  of  the  people  as  little  as  possible,  over  and   ^^^^^  ^^^  '^ 
above  what  it  brings  into  the  public  treasury.  ...  A  tax  may  either   people  as 
take  out  or  keep  out  of  the  pockets  of  the  people  a  great  deal  more   ^'^^"jij^^  ^^.^^ 
than  it  brings  into  the  public  treasury.  .  .  .  First,  the  levying  of   and  above 

it  may  require  a  great  number  of  ofTicers,  whose  salaries  may  eat  up    l^^l^^^'^nfo 
the  greater  part  of  the  produce  of  the  tax,  and  whose  perquisites    the  public 
may  impose  another  additional  burden  upon  the  people.    Secondly,    -^'-■''^"'■y- 


442  READINGS  IN  AMERICAN  DEMOCRACY 

it  may  obstruct  the  industry  of  the  people,  and  discourage  them 
from  applying  to  certain  branches  of  business  which  might  give  main- 
tenance and  employment  to  great  multitudes.  While  it  obliges  the 
people  to  pay,  it  may  thus  diminish,  or  perhaps  destroy,  some  of 
the  funds  which  might  enable  them  more  easily  to  do  so.  .  .  . 


Questions  on  the  foregoing  Readings 

1.  How  do  you  account  for  the  increasing  discontent  with  our  tax- 

ation system? 

2.  What  is  meant  by  the  "  breakdown  of  the  general  property  tax  "? 

3.  To  what  extent  is  local  assessment  inadequate? 

4.  How  may  taxes  unduly  interfere  with  business? 

5.  Name  the  foremost  defects  of  American  taxation. 

6.  Give  two  reasons  for  the  failure  of  the  general  property  tax. 

7.  Why  is  it  impracticable  to  enforce  the  general  property  tax? 

8.  Why  is  strict  enforcement  of  the  general  property  tax  unjust? 
Q.  Summarize  the  case  against  the  general  property  tax. 

10.  Why  are  corporations  inadequately  taxed  in  this  country? 

11.  What  is  the  true  test  of  tax-paying  ability? 

12.  What   is    the   relation    of    corporate    development    to    intangible 

property? 

13.  How  should  we  deal  with  the  problem. of  taxing  corporations? 

14.  What  is  the  significance  of  income  and  inheritance  taxes? 

15.  What    was    President    Roosevelt's    judgment  as    to    the    status    of 

income  and  inheritance  taxes? 

16.  Which  did  he  consider   more  important,   the  income   or  the  in- 

heritance tax? 

17.  Name  some  European  countries  in  which  the  inheritance  tax  is 

used. 

18.  What  is  the  social  significance  of  heavy  taxes  on  large  fortunes? 

19.  How  has  the  taxation  problem  been  attacked  in  many  states? 

20.  Why  are  the  results  unsatisfactory? 

21.  What  is  the  necessity  of  a  thorough  survey  of  the  tax  problem? 

22.  Name  some  groups  or  classes  which  ought  to  be  represented  in 

this  survey. 

23.  What  should  be  done  with  the  results  of  such  an  investigation 

or  survey? 

24.  What  is  the  importance  of  a  firm  grasp  of  the  principles  of  taxation? 

25.  What  four   maxims  or  principles   of   taxation   are   mentioned  by 

Adam  Smith? 


b.  Making  Government  Effective 

CHAPTER   XXXIII 

WHO  SHALL  SHARE  IN  GOVERNMENT? 

193.   The  suffrage  in  colonial  times  ^ 

A  striking  fact  in  the  history  of  suffrage  in  the  United  States  In  colonial 

is  the  rapid  extension  of  the  vote  since  colonial  days.    Data  are  in-  *"^^^  ^^^ 

■'  suffrage  was 

complete,  but  there  is  no  doubt  but  that  a  relatively  small  propor-  narrowly 

tion  of  adults  exercised  the  vote  previous  to  the  American  Revolu-  '■^^^'■'*^^^^- 
tion.    In  the  earUer  part  of  our  colonial  history,  suffrage  qualifications 
were  vague  and  indefinite.    Gradually,  by  means  of  legislative  action, 

additional  and  more  specific  qualifications  were  imposed.     In  the  Colonial 

following  extracts,  Dr.  Cortlandt  F.  Bishop  discusses  the  suffrage  JJJ.^JhT^'"'^ 

in  colonial  times:  suffrage: 

1.  Ethnic.  —  Race  qualifications  were  not  prescribed  by  statute,  (i)  ethnic, 
except  in  the  southern  colonies.    I  know  of  no  law  that  would  prevent 

an  Indian  or  a  Negro,  if  otherwise  qualified,  from  voting  in  the  north- 
ern colonies.  [At  a  late  date,  however,  Negroes  and  even  Indians 
were  barred  from  the  suffrage  in  some  of  the  southern  states.] 

2.  Political.  —  Qualifications  of  this  sort  were  rarely  prescribed    (2)  political, 
by  statute.     In  Pennsylvania,  voters  were  required  to  be  natural 

born  subjects  of  England;  in  Delaware,  of  Great  Britain.  .  .  .  Massa- 
chusetts after  1664  required  freemen  to  be  Englishmen,  while  in 
North  CaroUna  there  was  the  peculiar  provision  that  "no  person  in- 
habitant of  this  province,  bom  out  of  the  allegiance  of  his  majesty 
and  not  made  free,"  could  vote.  ... 

3.  Moral.  —  Moral  quaUfications  were  insisted  on  only  in  New   (3)  moral, 
England,  though  Virginia  denied  the  franchise  to  any  "convict  or 

person  convicted  in  Great  Britain  or  Ireland  during  the  term  for  which 
he  is  transported. "...  In  the  New  England  colonies  moral  delin- 
quencies had  a  double  effect.    Evidence  of  a  positive  character  was 

1  From   Cortlandt  F.  Bishop,  History  of  Elections  in  the  American  Colonies, 
New  York,  1893;  pp.  si-54.  S6,  5Q-6i,  64-66,  69-70. 

443 


444 


READINGS  IN  AMERICAN  DEMOCRACY 


at  one  time  necessary  before  a  person  could  be  admitted  to  the 
freedom  of  the  colony,  while  the  absence  of  correctness  in  moral 
behavior  would,  in  certain  cases,  lead  to  the  suspension  of  a  freeman 
from  his  privileges  or  even  to  his  total  disfranchisement.  [What 
constituted  correct  moral  behavior  was  variously  interpreted  in  the 
different  colonies.]  .  .  . 
(4)  religious,  4-  Religious.  —  In  Massachusetts  and  also  in  the  New  Haven 
colony  freemen  were  required  to  be  church  members.  [Rhode 
Island  required  a  profession  of  Christianity,  but  barred  Roman 
CathoHcs  from  the  vote.]  ...  In  South  CaroHna  a  statute  enacted 
in  1 7 16  required  voters  to  profess  the  Christian  religion. 

[There  were  also  religious  qualifications  of  a  negative  sort.]  For 
instance,  Quakers  were  strictly  debarred  from  becoming  freemen 
in  Massachusetts,  and  in  Plymouth.  ...  It  seems  to  have  been  the 
rule  in  most  of  the  American  colonies  that  Roman  CathoUcs  could 
not  vote.  [In  New  York  and  in  South  CaroUna  there  is]  evidence 
tending  to  prove  that  Jews  could  not  legally  vote. 

5.  Age.  —  It  may  be  stated  as  a  general  proposition  that  electors 
were  required  to  be  twenty-one  years  of  age.  .  .  . 

6.  Sexual.  —  There  seems  to  have  been  no  women's  rights  party 
in  the  colonies;  it  was  thus  not  found  necessary  to  debar  expressly 
women  from  the  privilege  of  voting,  except  in  Virginia.  .  . 

7.  Residential.  —  In  the  early  history  of  each  colony  there  was, 
as  has  already  been  explained,  very  httle  definiteness  in  regard  to 
the  qualification  of  voters.  [Still  there  is  evidence  to  show]  that 
residence  within  the  government,  province  or  territory,  was  generally 
required.  .  .  . 

8.  Property.  —  The  property  qualification  in  the  American  colonies 
is  a  subject  of  great  importance.  The  qualifications  mentioned  in 
the  preceding  sections  were  for  the  most  part  confined  to  particular 
portions  of  the  continent.  .  .  .  [On  the  other  hand,]  in  every  prov- 
ince, whether  royal  or  proprietary,  there  was  introduced,  beginning  in 
the  latter  part  of  the  seventeenth  century,  some  sort  of  property 
qualification,  and  the  tendency  during  the  middle  of  the  eighteenth 
century  was  toward  a  certain  amount  of  uniformity  in  this  respect 
throughout  the  colonies.  .  .  .  [The  amount  of  property  required, 
however,  varied  widely  among  the  different  colonies.]  .  .  . 


(s)   age, 


(6)   sexual, 


(7)   resi- 
dential. 


(8)   and 
property. 


WHO  SIL\LL  SHARE  IN  GOVERNMENT?  445 

194.   The  demand  for  universal  suffrage  ' 

Colonial  standards  of  suffrage  were  largely  carried  over  into  our   Application 
earlier  national  history,  and  in  1789  probably  less  than  five  per  cent   "'  ^^? 
of  the  American  people  were  permitted  to  vote.    After  the  opening  of   naturaTrights 
the  nineteenth  century,  however,  there  was  a  growing  agitation  for   ^°  ^^^ 
the  extension  of  the  suffrage.    One  of  the  important  arguments  ad-  of  the 
vanced  in  favor  of  a  wider  suffrage  was  the  doctrine  of  natural  rights,   suffrage, 
according  to  which  all  men  are  bom  free  and  equal,  and  are  entitled 
to  certain  fundamental  rights  of  which  they  may  not  be  deprived. 
How  this  doctrine  was  applied  to  the  question  of  suffrage  is  illus- 
trated in  the  following  extract   from  an  address  before  the  Rhode 
Island  Constitutional  Convention  of   1834,  at  a  period  when  the 
restricted  suffrage  in  that  state  was  a  source  of  ill-feeHng  and  serious 
dissension: 

We  contend  then,  That  a  participation  in  the  choice  of  those  who   Suffrage  a 
make  and  administer  laws  is  a  natural  right;  which  cannot  be  abridged,    °^*^^'  "S"t. 
nor  suspended  any  farther  than  the  greatest  good  of  the  greatest  number 
imperatively  requires. 

And  this  greatest  good  is  not  that  of  any  portion  of  the  people,  This  funda- 
however  large,  but  of  the  whole  population  of  a  state.  It  may  seem  |Ti™tal  truth 
strange  that  a  fundamental  truth  Hive  this,  which  contains  the  very 
hfe-blood  and  vitality  of  a  republican  government,  should  be  called 
in  question  at  the  present  day,  and  in  our  own  country.  But  it  is 
nevertheless  true  that  there  are  those,  who,  while  they  yield  a  formal 
and  guarded  deference  to  this  great  doctrine,  yet  in  their  reasoning 
and  practice  destroy  all  the  force  of  their  hollow  and  doubtful  ad- 
mission; and  maintain  doctrines,  which,  if  followed  out  to  their 
legitimate  consequences,  would  justify  almost  any  exercise  of  irre- 
sponsible and  unjust  power.  .  .  . 

Government  was  first  formed  by  the  act,  and  with  the  consent  of   Government 
those  who  were  to  be  governed,  given  cither  expressly,  or  by  ac-   ^"^^  "P°° 
quiescence.    And  what  did  government  confer  upon  those  who  estab-   of  the 
lished  it?    Here  hes  the  radical  error  of  those  who  contend  that  all   sovemed, 

*  From  an  Address  to  the  People  of  Rhode  Island,  assembled  in  Constitutional 
Convention  in  1834.  "Chiefly  written  by  Thomas  W.  Dorr,  '  Providence,  1834; 
pp.  26,  28-29. 


446 


READINGS  IN  AMERICAN  DEMOCRACY 


but  previous 
to  the  estab- 
lishment of 
government 
there  existed 
a  natural 
right  to 

life, 


personal 
liberty, 

property. 


the  pursuit 
of  happiness, 


and  to  de- 
cide upon 
one's  par- 
ticipation in 
government. 


Suffrage 
a  natural 
right. 


political  rights  are  the  creatures  of  the  political  compact.  Those 
reasoners  will  tell  you  about  rights  created  by  society.  We  wish 
to  ask  previously  what  those  rights  were,  which  existed  before  political 
society  itself.  Those  rights  were  the  rights  to  life,  to  Uberty,  to 
property  —  in  general,  to  the  pursuit  of  happiness. 

Life  was  the  gift  of  the  common  Maker  of  all;  and  could  not  be 
taken  without  committing  the  greatest  act  of  injustice  which  one 
man  can  commit  against  another. 

Personal  Uberty  too,  the  right  to  walk  abroad  upon  the  face  of 
the  earth,  was  another  natural  right. 

The  bounties  of  nature  were  all  at  the  beginning  spread  out  before 
the  human  race  for  their  sustenance  and  enjoyment;  and  he  who 
should  appropriate  the  fruits  of  the  earth  to  his  own  use,  —  and  more 
especially  those  with  which  he  had  mixed  his  own  labor,  by  the  culti- 
vation of  the  soil,  had  a  just  right  to  repel  the  invasion  of  him  who 
should  seek  to "  dispossess  him  of  what  he  had  acquired.  This  was 
the  natural  right  to  property. 

Each  individual  also  had  the  right  of  pursuing  his  own  happiness, 
in  the  way  which  he  might  prefer,  provided  he  injured  no  man  in 
the  enjoyment  of  the  same   right. 

Another  great  personal  right,  already  alluded  to,  has  been  reserved 
for  the  last:  U  is  the  right  which  every  man,  among  the  families  by 
which  nations  were  composed,  had,  of  giving  or  withholding  his  voice 
in  every  question  relating  to  the  union  of  those  families  in  a  form  of 
government;  and  of  removing  from  its  jurisdiction  if  that  union  were 
formed  against  his   consent. 

The  existence  of  such  a  natural  right  is  too  evident  to  be  disputed. 
And  so  far  was  it  from  being  surrendered  when  government  was  once 
formed,  that  its  continuance  was  absolutely  necessary  to  maintain 
the  existence  of  that  government,  by  the  reelection  of  new  magis- 
trates, when  the  terms  of  those  first  elected  had  expired.  This  right 
is  the  very  right  of  suffrage  which  is  the  burden  of  our  present  inquiry; 
and  which  we  call  a  natural  right.  .  .  , 


WHO  SHALL  SHARE  IN  GOVERNMENT?  447 

195.   Woman  suffrage  summed  up  ' 

The  doctrine  of  natural  rights,  together  with  a  large  number  of   widening 
other  factors,  operated  to  widen  the  suffrage  in  the  nineteenth  century.    "^  ^''*-' 
Nominally,  universal  manhood  suffrage  seems  to  have  been  attained   ^"  "^'^' 
when  in  1870  the  Fifteenth  Amendment  to  the  Federal  Constitution 
declared  that  the  right  of  citizens  of  the  United  States  to  vote  shall  The 
not  be  denied  or  abridged  on  account  of  race,  color  or  previous  con-   ^'f^centh 
dition  of  servitude.     Meanwhile  the  agitation  for  the  extension  of 
the  suffrage  to  women  was  growing,  culminating  in  1920  in  the  passage 
of  the  Nineteenth  Amendment,  which  declared  that  the  right  of  suf-   Nineteenth 
frage  shall  not  be  denied  on  account  of  sex.    Much  has  been  written  intendments. 
for  and  against  woman  suffrage,  and  upon  the  question  of  whether 
the  exercise  of  the  ballot  by  women  is  beneficial,  injurious  or  neutral 
in  its  effects.    In  1919,  Professor  Munro  summed  up  the  discussion 
as  follows: 

Various  arguments  are  advanced  both  for  and  against  the  policy  Arguments 

of  giving  full  voting  rights  to  women.     Women  are  citizens;   many   ^°''  ^^^ 

r    1  1     11  ^r  extension  of 

of  them  own  property;    and  all  are  so  affected  by  the  workings  of   full  suffrage 

government  as  to  be  directly  interested  in  its  efficiency.     In  some   ^^  women. 

fields  of  law  and  regulation,  such  as  those  relating  to  the  care  of  the 

dependent  and  deHnquent  classes,  to  hours  and  conditions  of  female 

and  child  labor,  women  have  a  particularly  vital  interest.     It  is 

claimed  that  the  extension  of  the  suffrage  to  women  would  in  some 

degree  offset  the  political  influence  of  the  foreign-bom  element  in 

large  communities  since  the  figures  show  that  far  more  male  than 

female  immigrants  come  to  this  country.     It  is  said  that  women,  if 

given  the  ballot,  would  constitute  a  powerful  element  in  opposition 

to  the  vicious  influences  in  American  political  and  social  life,  the 

saloon,  the  gambling  den,  the  brothel,  and  so  on.     And  finally,  it 

is  urged  that  where  women  have  been  given  the  suffrage  the  result  has 

been  made  manifest  in  the  humanizing  of  the  laws  and  in  the  improved 

tone  of  political  fife. 

In  opposition  to  the  policy  it  is  argued  that  women  would  not  use  .\rgumcnts 

the  ballot  wisely,  being  actuated  by  their  sympathies  and  emotions  ^'''^^^p  ^"''' 

'  From  William  Bennett  Munro,  The  Government  of  lite  United  Statts.    The 
Macmillan  Company,  New  York,  igig;  pp.  81-82. 


448 


READINGS  IN  AMERICAN  DEMOCRACY 


WTiat 

experience 

proves. 


Conclusion. 


rather  than  by  their  judgment;  that  they  would  not  develop  an  active 
interest  in  poHtics  or  come  to  the  polls  in  reasonably  large  numbers; 
that  the  extension  of  the  suffrage  to  women  would  tend  to  weaken 
the  family  as  a  social  and  economic  unit;  that  it  would  greatly  in- 
crease the  expense  of  elections  without  making  government  more 
truly  representative;  and  that  it  would  merely  widen  the  area  of 
political  activity  at  the  expense  of  normal  domestic  life. 

The  results  of  woman  suffrage  in  the  states  which  have  had  a 
sufficient  experience  with  the  institution  seem  to  show  that  neither 
the  merits  nor  defects  of  the  policy  have  been  as  marked  as  its  advo- 
cates or  opponents  respectively  would  have  us  believe.  Women 
have  used  the  suffrage  much  as  men  have  used  it,  showing  no  more 
interest  and  no  less,  using  the  ballot  with  great  inteUigence  at  some 
times  and  with  little  at  others,  even  as  men  have  done  for  many 
generations,  influenced  by  their  prejudices,  whipped  into  line  by 
party  bosses,  all  as  men  are,  and  apparently  to  the  same  degree.  The 
granting  of  voting  rights  to  women  in  a  dozen  states  of  the  Union 
has  not  demoralized  domestic  life  in  any  of  them,  nor,  on  the  other 
hand,  has  it  had  noticeably  effective  results  in  the  way  of  securing 
these  states  a  priority  over  the  others  in  the  humanitarianism  of  their 
laws. 

The  chief  merit  of  woman  suffrage  in  these  communities  has  been 
that  of  rendering  content  a  large  group  of  citizens  without  in  any 
perceptible  measure  impairing  the  economic,  social,  or  poUtical  order. 


The  Thir- 
teenth, Four- 
teenth, and 
Fifteenth 
amendments. 


196.   How  the  Negro  is  kept  from  voting  ^ 

After  the  Civil  War  the  suffrage  was  profoundly  affected  by  the 
Negro  question.  In  1865  the  Thirteenth  Amendment  abolished 
slavery;  in  1868  the  Fourteenth  Amendment  provided  that  any 
state  denying  the  vote  to  any  of  its  male  citizens  might  suffer  a 
reduction  in  its  Congressional  representation;  and  in  1870  the  Fif- 
teenth Amendment  declared  that  the  right  of  citizens  to  vote  shall 
not  be  denied  or  abridged  on  account  of  race,  color,  or  previous 
condition  of  servitude.    As  a  matter  of  theory,  and  so  far  as  the 

■  From  the  American  Political  Science  Association,  Proceedings  of  the  Second 
Anntial  Meeting,  1905.  Albert  Bushnell  Hart,  "The  Realities  of  Negro  Suffrage." 
Lancaster,  Pa.,  1906;  pp.  159-162. 


WHO  SHALL  SHARE  TN  GOVERmiENT?  449 

suffrage  is  concerned,  these  amendments  placed  the  Negro  on  a  level 

with  the  white  citizen.    As  a  matter  of  fact,  a  large  proportion  of 

our  potential  Negro  voters  have  been  systematically  excluded  from 

the  polls.     Some  of  the  ways  in  which  Negroes  may  be  kept  from 

voting  are  discussed  by  Professor  Hart  in  the  following  selection: 

Throughout  the  last  thirty  years  the  tendency  in  the  northern  Trend  of  the 

states  has  been  to  abolish  all  property  and  tax  qualifications.     In   ^"■^''^8^ 

movement 

the  southern  states  pubUc  sentiment  has  worked  the  other  way.  in  the 
With  a  view  to  cut  down  Negro  suffrage  a  number  of  southern  states  South, 
have  enacted  tax  qualifications  rather  high  for  the  conditions.  .  .  . 
The  disqualifications  for  crime  have  also  been  somewhat  enlarged 
and  possibly  a  penalty  involving  disfranchisement  is  sometimes 
affixed  by  judges  upon  a  Negro  which  would  not  be  assigned  to  a 
white  man. 

The  important  thing  to  remember  in  this  process  is  that  as  ,a  mat-   The  Negroes 
ter  of  fact  the  Negro  vote  has  been  suppressed.  .  .  .  There  is  hardly  ^JJ^^J^^^^^Ld 
room  for  discussion  with  our  southern  brethren  as   to  whether  they   for  three 
mean  or  expect  to  take  away  Negro  suffrage  —  they  have  done  so     ^*^  '^^■ 
practically.    No  Negro  is  a  candidate  for  any  state  office,  or,  except 
in  a  very  few  communities,  for  any  county  or  local  office.     Some 
Negroes  have  always  voted,  but  they  have  never  been  allowed  to 
exercise  a  balance  of  power  between  two  state  parties  or  between  two 
candidates  for  Congress.     They  might  safely  vote  for  a  man  who 
was  certain  to  be  elected,  or  for  a  man  in  a  sure  minority;   but  in 
the  essential  quality  of  a  vote,  that  it  may  go  to  convert  a  minority 
into  a  majority,  the  Negroes  have  for  three  decades  been  hopelessly 
disfranchised.  .  .  . 

[Recently  there  is  a  movement]  for  a  new  and  more  sweeping  Recently 
method  of  hedging  in  the  Negro  vote  by  state  constitutional  amend-  J^^[.^^^'^„\ 
ments.     The  purpose  of  this  new  legislation  ...  [is  admittedly]    to  restrict 

,         ,  the  NcKFO 

to  cut  out  most  of  the  ignorant  Negro  voters,  while  leavmg  m  most  ^^f^^^^^  ^y 
of  the  white  voters,  [and  at  the  same  time  to  avoid  a  technical  viola-  constitu- 
tion of  the  Fifteenth  Amendment.]    Six  states  —  Mississippi,  Louisi-  ^'°"J,^n,p„, 
ana,  North  CaroHna,  South  CaroHna,  Alabama,  and  Virginia  —  have  The  vote^^ 
now  framed  such  amendments.  .  .  .  ISIany  of  these  amendments  are  J^^  ^^^^^^^ 
complicated  and  hmited  one  part  by  another,  but  the  main  principles  of 
are  as  follows: 


4SO 


READINGS  IN  AMERICAN  DEMOCRACY 


(i)   convic- 
tion of 
crime, 


(2)  lack  of 
property, 

(3)  failure 
to  pay 
poll  tax, 

(4)  failure 
to  produce 
tax  receipts. 


(5)  failure 
to  pass  an 
educational 
test, 


(6)   or  fail- 
ure to  prove 
descent  from 
a  person 
entitled  to 
vote  prior 
to  January 
I,  1867. 


(i)  Nearly  all  the  constitutions  in  terms  prohibit  persons  convicted 
of  certain  crimes  from  ever  voting  again;  for  instance  in  Mississippi, 
the  offences  enumerated  are  "bribery,  burglary,  theft,  arson,  obtain- 
ing money  under  false  pretense,  embezzlement,  perjury,  or  big- 
amy." .  .  . 

(2)  Two  states  —  Alabama  and  Mississippi  —  have  a  moderate 
property  qualification  as  one  of  several  alternatives. 

(3)  An  the  six  states  except  Louisiana  require  the  prepayment 
of  poll  taxes  for  one,  two  or  three  years.  .  .  . 

(4)  In  two  states,  South  Carolina  and  Mississippi,  the  voter  must 
be  able  to  prove  at  the  poUs  that  he  has  paid  taxes,  and  since  Negroes 
are  notoriously  careless  about  keeping  such  papers,  they  are  much 
more  Hkely  to  lose  the  necessary  papers. 

(5)  AU  the  constitutions  have  an  educational  clause;  but  in  two 
states  taxes  on  property  worth  $300  may  be  a  substitute  for  reading 
and  writing;  and  in  Mississippi  it  is  provided  that  the  voter  must 
"be  able  to  read  any  section  of  the  constitution  of  this  state;  or  he 
shall  be  able  to  understand  the  same  when  read  to  him,  or  give  a 
reasonable  interpretation  thereof."  .  .  .  The  whole  machinery  of 
[such  clauses]  is  in  the  hands  of  the  white  election  ofificers,  who  are 
expected  to  be  easily  convinced  that  a  white  man  understands  and 
with  difficulty  convinced  in  the  case  of  a  Negro. 

(6)  Five  of  the  six  constitutions  contain  the  remarkable  "grand- 
father clause,"  which  in  somewhat  different  phraseology  sets  forth 
that  the  descendant  of  a  person  who  was  a  voter  prior  to  January  i, 
1867,  shall  vote,  notwithstanding  his  inability  to  satisfy  the  in- 
telligence or  property  qualifications.  This  is  the  most  doubtful 
part  of  the  whole  system,  for  it  sets  up  an  exemption  from  the  ordinary 
qualifications  which  apphes  only  to  members  of  one  race  and  cannot 
possibly  be  acquired  by  members  of  the  Negro  race.  .  .  . 


197.   Civic  capacity  cannot  be  created  by  proclamation^ 

In  the  whole  of  American  politics  there  is  no  more  inflammable 
subject  than  that  of  Negro  suffrage.    Whatever  attitude  one  may 

'  From  the  American  Law  Review,  Vol.  XLV.    Charles  Wallace  Collins,    "The 
Fourteenth  Amendment  and  the  Negro  Race  Question";  pp.  853-856. 


WHO  SHALL  SHARE  IN  GOVERNMENT? 


451 


take  upon  the  subject,  some  faction  is  certain  to  be  incensed  or  al- 
ienated. No  one  can  deny  that  the  facts  of  Negro  suffrage  are  sub- 
stantially as  set  forth  by  Professor  Hart  in  the  above  selection.  But 
why  has  the  Negro  been  disfranchised?  And  who  is  to  blame  for 
this  condition?  Many  authorities  claim  that  the  Negro  was  disfran- 
chised chiefly  because  the  exercise  of  the  vote  by  ignorant,  incapable 
Negroes  threatened  the  South  with  destruction.  And  for  many  of 
the  evil  effects  of  disfranchisement  responsibility  is  placed  upon 
those  who  insisted  upon  admitting  the  freed  slaves  suddenly  and  com- 
pletely to  full  civil  rights.  That  civic  capacity  cannot  be  created  by 
proclamation,  but  is  the  result  of  slow  growth,  is  the  underlying 
theme  of  the  following  selection  by  Charles  Wallace  Collins,  writing 
in  the  American  Law  Review: 

In  conclusion,  we  may  ask  what  positive  gain  has  the  operation 
of  the  Fourteenth  Amendment  been  to  the  Negro  race?  We  can  point 
to  nothing.  All  attempts  at  Federal  intervention  have  been  fruit- 
less in  permanent  resxilts.  The  operation  of  the  Amendment  in  its 
relation  to  the  Negro  race  has  in  it  all  of  the  irony  of  history.  It  is 
the  perversion  of  a  noble  ideaUsm  that  the  lowest  and  most  benighted 
element  of  the  African  race  should  in  these  enlightened  days  be  the 
ones  to  rise  up  and  claim  the  sacred  heritage  of  Anglo-Saxon  liberties 
which,  through  the  fortune  of  circumstance,  have  become  embodied 
in  the  supreme  law  of  the  land  in  the  shape  of  the  Fourteenth 
Amendment.  .  .  . 

The  words  "citizen,"  "life,  Hberty  and  property,"  "due  process 
of  law,"  and  "the  equal  protection  of  the  laws,"  were  born  through 
a  travail  in  which  the  African  had  no  share.  They  breathe  the  sacred 
symbols  of  a  race  which  paid  the  price  for  greatness.  They  are  the 
fruit  of  unmeasured  sacrifice  and  suffering,  of  innumerable  and  length- 
ened struggles  through  defeat  and  failure  to  final  victory.  They 
are  the  key  words  of  that  race  which  has,  among  all  of  the  peoples  of 
the  earth,  shown  the  highest  genius  for  law  and  government.  They 
can  never  be  superimposed  from  without.  The  great  truths  which 
they  embody  can  come  into  being  only  through  the  birth  pangs  of 
the  inner  life. 

The  Fourteenth  Amendment  declared  the  Negro  to  be  a  citizen 
of  the  United  States  of  America.  ...  But  it  is  a  serious  matter  to 


Innammablc 
nature  of 
the  question 
of  Negro 
suflrage. 


The  per- 
version of 
a  noble 
idealism. 


Self-govern- 
ment is  the 
natural  fruit 
of  prolonged 
toil  and 
sacrifice, 


452  READINGS  IN  AMERICAN  DEMOCRACY 

presupposing    be  a  citizen  of  a  country  like  the  United  States.    Its  ideals  of  citizen- 

centuries  of     gj^jp  presuppose  centuries  of  independent  personal  and  racial  achieve- 

and  racial       ment.  ...  In  the  words  of  an  eminent  statesman  and  patriot:  "It 

achievement.    (^^j-Q^yg  upon  him  a  great  responsibiUty  and  expects  of  him  a  constant 

and  watchful  independence.    There  is  no  one  to  look  out  for  his 

rights  but  himself.    He  is  not  a  ward  of  the  government,  but  his  own 

guardian.    The  law  is  not  automatic;   he  must  himself  put  it  into 

operation,  and  he  must  show  good   cause  why  the  courts  should 

exercise  the  great  powers  vested  in  them.  .  .  ." 

The  en-  These  remarks  were  spoken  to  white  men  .  .  .  yet  they  apply 

franchise-        a,lso  to  the  Afro-American.    They  speak  to  him  with  redoubled  force. 

ment  of  the  .  .... 

Negro  was,      They  set  before  him  the  most  exalted  ideal  of  citizenship  yet  achieved 

under  the        ^y  j^^ri  and  bid  him  reach  it  if  he  can.    There  is  a  touch  of  pathos 
circum- 
stances, a        in  all  of  this.    The  Negro  has  been  the  only  innocent  party  m  this 

*^™°^      ,         turmoil  of  the  times.    He  at  least,  by  every  moral  law,  has  been  en- 

agamst  the 

colored  race,   titled  to  have  justice  meted  out  to  him.    On  the  contrary  he  has  been 

used  as  a  tool  first  by  one  section  of  the  country  and  then  by  the 
other.  .  .  .  And  finally,  to  satisfy  the  political  idealism  and  the 
partizan  plans  of  those  to  whom  he  himself  was  a  stranger,  he  has 
been  thrown  naked,  penniless  and  deserted  upon  the  land  to  pick 
his  way  in  the  midst  of  the  highest  and  most  complicated  civiliza- 
tion known  to  the  earth. 
The  Four-  The  adoption  of  the  Fourteenth  Amendment  could  not  make 

tmith  Anglo-Sa.xons  out  of  Africans.    It  was  unjust  to  the  Negro  to  force 

could  not  him  to  play  a  role  for  which  by  the  forces  of  nature  he  was  unfitted. 
Saxons  out  ^^  deserves  neither  ridicule  nor  blame  for  the  comedy  and  the  tragedy 
of  Africans,  of  the  Reconstruction.  It  is  one  of  the  fundamental  precepts  of  po- 
litical science  to-day  that  only  those  people  in  a  community  can  par- 
ticipate in  its  civic,  social  and  political  Hfe  who  are  conscious  of  a 
common  origin,  share  a  common  idealism  and  look  forward  to  a  com- 
mon destiny.  Where  the  community  is  composed  of  two  divergent 
races  rendering  such  a  community  of  Hfe  impossible,  the  weaker  and 
less  favored  race  must  inevitably  and  in  the  nature  of  things  take 
the  place  assigned  to  it  by  the  stronger  and  dominant  race. 

The  Republican  party,  which  controlled  all  branches  of  the  govern- 
ment after  the  War,  might  have  made  the  Negroes  wards  of  the 
nation,  putting  them  into  a  position  similar  to  that  occupied  by  the 


WHO  SHALL  SHARE  IN  GOVERNMENT?  453 

American  Indians.     They,  especially  at  that  time,  needed  the  pro-   The  funda- 

tecting  arm  of  the  Federal  government  thrown  around  them.    Under   '"p"^^'   . 

°  mistake  in 

this  system  of  sympathetic  tutelage  the  African  might  have  been   our  Negro 
led  to  develop  whatever  latent  powers  that  may  be  inherent  in  his   P^"*^^' 
race.    To-day  he  can  justly  raise  the  cry  that  many  of  the  doors  of 
opportunity  are  closed  to  him.  .  .  . 

198.   How  many  potential  voters  really  vote?  ^ 

The  suffrage  is,  of  course,  a  means  and  not  an  end.    To  extend  the   Though  in- 

privilege  of  voting  to  people  who  make  little  or  no  use  of  it  may  be   terest  in 

r  1-     1  •  r    1  n-  clcctions  is 

of  little  consequence;    the  extension  of  the  suffrage  to  persons  who   probably 

habitually  use  the  ballot  will  have  an  appreciable  effect  upon  govern-  increasing, 

the  neglect 
ment.     It  becomes  a  matter  of  grave  concern,  therefore,  to  know  to  vote  is 

whether  or  not  persons  who  are  legally  entitled  to  the  vote  are  really   ^''''  ^ 

,    ,.  serious 

using  the  ballot.    Professor  Hart  beheves  that  in  general  the  interest  evil. 

of  individuals  in  elections  is  increasing.      At  the  same  time  the  fact 

that  a  large  number  of  potential  voters  habitually  stay  away  from 

the  polls  constitutes  a  serious  problem.     In  the  following  selection, 

Professor  Hart  discusses  the  proposal  to  penalize  those  who  neglect 

to  vote: 

Bad  weather  keeps  many  thousands  of  voters  at  home;    compul-   Some  people 

sory  voting  would  .  .  .  disqualify  thousands  of  men  who  are  kept   ^^^^  ^^^^ 

away  by  bad  roads,  or  by  the  rising  of  the  southern  streams,  along  polls  be- 

the  beds  of  which  highways  are  often  constructed.    The  voter  who   ^'^^^^  °^  ^^^ 
°         ■'  weather. 

has  a  cold  or  who  justly  fears  a  cold  .  .  .  will  be  debarred.  I  doubt 
whether  fear  of  disfranchisement  or  fine  would  greatly  diminish  any 
of  the  bad-weather  classes. 

Another  group  is  made  up  of  those  wlio  will  not  mix  in  "dirty   others  re- 
politics";    who  think  all  parties  "packs  of  scoundrels,"  and  who   [jj^.j^^y"^ 
want  to  be  left  to   their   comfortable  private   life.  .  .  .  That  such   politics." 
persons  constitute  one  in  a  hundred  of  the  voters  is  hard  to  believe. 
If  disfranchised  for  not  voting,  how  many  additional  votes  will  be 
got,  and  how  many  dollars  for  the  public  treasury? 

Much  larger  numbers  neglect  to  vote  because  they  know  their 

party  to  be  in  a  hopeless  minority,  and  that  their  votes  can  make  no 

>  From  the  Political  Science  Quarterly,  Vol.  vii,  No.  2.    Albert  Bushnell  Hart, 
"The  Exercise  of  the  Suffrage";  pp.  324-326. 


454 


READINGS  IN  AMERICAN  DEIVIOCRACY 


Many 
persons 
neglect  to 
vote  because 
they  know 
their  party 
is  in  a 
hopeless 
minority. 


Sometimes 
voters  are 
"too  busy" 
to  go  to 
the  polls. 


The  problem 
of  dealing 
with  the 
vote  seller. 


Conclusion 
upon  the 
proposal  to 
rx.-nalize 
potential 
voters  for 
neglecting 
to  vote. 


possible  difference.  One  would  expect  to  find  many  thousands  of 
such  men  in  the  absolutely  sure  states.  ...  All  the  southern  states 
have  a  small  proportional  vote;  the  congressional  vote  of  Tennessee 
is  about  haK  that  of  Iowa,  which  has  about  the  same  population  and 
the  same  industries.  In  Vermont,  which  has  never  gone  anything 
but  Republican  since  there  was  a  RepubHcan  party,  the  majority 
takes  pride  in  displaying  its  own  size.  The  stay-at-homes  are  about 
as  numerous  in  close  as  in  sure  states,  particularly  if  the  opinion 
gets  abroad  that  one  party  is  reasonably  sure  to  win.  .  .  . 

One  large  class  of  abstainers  would  probably  be  reduced  by  [a 
compulsory  voting]  law;  it  is  the  men  who  are  public-spirited  and 
who  know  that  they  ought  to  vote,  but  who  are  too  busy  and  who 
think  their  duty  will  be  performed  by  some  one  else.  If  such  men 
voted  without  much  regard  for  party  when  they  did  go  to  the  polls, 
they  might  frequently  change  elections;  in  fact,  however,  their  num- 
ber would  probably  only  swell  the  total  vote  on  both  sides  without 
much  altering  results.  .  .  . 

Next  comes  the  class,  unhappily  too  large,  of  those  who  neither 
know  nor  care  anything  about  the  election,  the  candidates  or  the 
result,  but  who  do  care  to  sell  their  votes.  The  hope  of  the  reformers 
seems  to  be  that  such  men  will  get  so  deeply  in  arrears  of  fines  that 
they  will  disappear  out  of  poHtics  from  sheer  inabiUty  to  pay  their 
way  back  to  the  suffrage.  .  .  . 

This  brings  us  to  the  last  and  most  important  class  of  absentees, 
those  who  deliberately  withhold  their  votes  because  they  think  that 
they  can  exert  more  influence  on  public  affairs  in  that  way  than  by 
casting  them.  The  great  evil  of  the  whole  sirffragc  system  is  not  that 
votes  are  few,  but  that  they  are  unconsidered.  If  a  commission 
.went  from  house  to  house  to  get  votes,  so  that  there  were  no  trouble 
to  the  voters,  nineteen  men  out  of  twenty  would  vote  their  usual 
party  ticket.  Any  unusual  defection  of  voters  means  a  deliberate 
lesson  to  party  managers.  A  similar  lesson  might  be  taught  by  vot- 
ing for  some  third-party  candidate,  or  by  voting  for  a  good  candidate 
on  the  other  ticket.  As  a  matter  of  fact  there  is  not  in  the  United 
States  one  voter  in  fifty  who  will  do  either  under  any  circumstances. 
Neither  party  feels  more  confidence  in  the  nominating  apparatus  of 
the  other  side  than  in  its  own.    American  voters  rarely  pass  from 


WHO  SHALL  SHARE  IN  GOVERNMENT?  455 

one  party  to  another;  they  depend  on  the  silent  but  effectual  pro- 
test of  leaving  their  party  in  the  lurch.  ...  To  compel  men  to  vote 
against  their  will  is  to  tighten  the  control  of  party  managers.  The 
defect  of  the  compulsory  system,  as  of  many  proposed  reforms  which 
are  expected  to  restore  the  Eden  period  of  pohtics,  is  that  it  does 
not  go  to  the  root  of  the  matter.  .  .  . 


Questions  on  the  foregoing  Readings 

1.  What  can  be  said  as  to  the  ethnic  qualifications  of  the  suffrage 

in  colonial  times? 

2.  What   moral  qualifications  of   the   suffrage   were  imposed  in   the 

New  England  colonies? 

3.  What  were  some  of  the  religious  qualifications  of  the  suffrage  in 

colonial  times? 

4.  What  can  be  said  as  to  the  property  quaUfications  imposed  in 

colonial  times? 

5.  What  is  meant  by  the  doctrine  of  natural  rights? 

6.  What   fundamental   rights   existed   previous   to   the   formation   of 

government,    according    to    the    advocates   of    the    doctrine    of 
natural  rights? 

7.  Name  two  important  amendments  to  the  Federal  Constitution, 

which  affect  the  suffrage  question. 

8.  Summarize  the  arguments  advanced  in  behalf  of  woman  suffrage. 

9.  What  were  some  of  the  arguments   urged   against   the  extension 

of  full  suffrage  to  women? 

10.  What  does  experience  prove  as  to  merits  and  defects  of  the  woman 

suffrage  argument? 

11.  What  is  Professor  Munro's  conclusion  as  to  woman  suffrage? 

12.  What  was  the  nature  and  purpose  of  the  Thirteenth,  I'ourteenth, 

ahd  Fifteenth  Amendments? 

13.  In  what  respect  has  the  suffrage  movement  developed  differently 

in  the  North  and  in  the  South? 

14.  With  respect  to  Negro  suffrage,  what  is  the  significance  of  recent 

constitutional  changes  in  the  South? 

15.  How  may  an  educational  test  be  used  to  bar  the  Negro  from  the 

polls? 

16.  Explain   the   nature   and   function   of   the   "  grandfather   clause  " 

in  some  of  our  southern  constitutions. 

17.  Why  was  the   Negro  disfranchised  after  the  Civil  War? 

18.  What  can  be  said  as  to  the  responsibility  for  the  evils  which  have 

followed  upon  this  disfranchisement? 


456  READINGS  IN  AMERICAN  DEMOCRACY 

19.  Explain  the  statement  that  "  the  operation  of  the  [Fourteenth] 

Amendment  in  its  relation  to  the  Negro  race  has  in  it  all  of  the 
irony  of  history." 

20.  Explain  carefully  why  the  sudden  enfranchisement  of  the  Negro 

was  a  crime  against  the  colored  race. 

21.  What  was  the  fundamental  mistake  in  our  Negro  policy  in  Re- 

construction times? 

22.  Is  interest  in  elections  decreasing  or  increasing? 

23.  Name  some  reasons  why  potential  voters  stay  at  home  on  election 

day. 

24.  To  what  extent  would  -a  compulsory  voting  law  bring  these  po- 

tential voters  to  the  polls? 
2$.    What  is  Professor  Hart's  conclusion  as  to  the  value  of  legislation 
compelling  the  exercise  of  the  suffrage? 


CHAPTER   XXXIV 
THE   POLITICAL  PARTY 

199.   Extent  of  party  organization  ^ 

There  is  no  constitutional  basis  or  provision  for  American  political  The  political 
parties,  nevertheless  each  of  the  great  parties  has  built  up  a  powerful   j^fj-'iy^jj.s 
organization  which  coordinates  its  members  in  every  part  of  the  coun-   numerous 
try.     In    practically  every  township,  village,   election  district  and   elements"^^^ 
city  ward,  there  are  local  committees  and  party  agents,  whose  work 
it  is  to  promote  the  interests  of  the  party.    Above  these  local  workers 
are  county  and  state  committees,  and  finally,  at  the  top  of  the  organi- 
zation, the  national  committee.     Altogether  the  organization  of  a 
political  party  is    made  up  of    numerous    and  diverse   groups,  as 
Lord  Bryce  points  out  in  the  following  passage: 

In  America  the  Inner  Circle,  that  is  to  say,  the  persons  who  make  The  list  of 
political  work  the  chief  business  of  life,  for  the  time  being,  includes:   ^"i^lcia^n"^ 

First.  —  All  members  of  both  houses  of  Congress.  includes,  (i) 

Secondly.  —  AU  Federal  office-holders  except  the  judges,  who  are   (2*)"^^^^^"' 
irremovable,  and  the  "classified  civil  service."  Federal 

Thirdly.  —  A  large  part  of  the  members  of  the  state  legislatures,    ^j^ahrgr* 
How  large  a  part,  it  is  impossible  to  determine,  for  it  varies  greatly   part  of 
from  state  to  state.    I  should  guess  that  in  New  York,  Pennsylvania,    iegj^l^tors^ 
New  Jersey,  CaUfomia,  Maryland,  and  Louisiana,  half  (or  more) 
the  members  were  professional   politicians;    in  Connecticut,  Ohio, 
Virginia,  Illinois,  Texas,  perhaps  less  than  half;  in  Georgia,  Kentucky, 
Iowa,  Minnesota,  Oregon,  not  more  than  one-third;  in  Massachusetts, 
Vermont,  and  some  other  states,  perhaps  even  less.     But  the  line 
between  a  professional  and  non-professional  politician  is  too  indefinite 
to  make  any  satisfactory  estimate  possible. 

1  From  James  Bryce,  The  American  Commonwealth.    The  Macmillan  Co.,  New 
York,  1914.    Vol.  n,  pp.  62-64. 

457 


(4)  most 
state  ofi&ce- 
holders, 

(5)  many 
local  office- 
holders, 


and  (6) 
numerous 
office- 
seekers. 


The  above 
are  pro- 
fessional 
politicians. 


This  group 
not  clearly 
divisible 
from  the 
non-profes- 
sional group 


458  READINGS  IN  AMERICAN  DEMOCRACY 

Fourthly.— I^e3ir\y  all  state  office-holders,  excluding  all  judges  in 
a  very  few  states,  and  many  of  the  judges  in  the  rest. 

fifthly.  —  Nearly  all  holders  of  paid  offices  in  the  greater  and  m 
many  of  the  smaller  cities,  and  many  holders  of  paid  offices  in  the 
counties.  There  are,  however,  great  differences  in  this  respect  be- 
tween different  states,  the  New  England  States  and  the  newer  states 
of  the  Northwest,  as  weU  as  some  southern  states,  choosing  many  of 
their  county  officials  from  men  who  are  not  regularly  employed  on 
politics,  although  members  of  the  dominant  party. 

Sixthly.  —  A  large  number  of  people  who  hold  no  office  but  want 
to  get  one,  or  perhaps  even  \vho  desire  work  under  a  municipaUty. 
This  category  includes,  of  course,  many  of  the  ""-orkers"  of  the 
party  which  does  not  command  the  majority  for  the  time  being, 
in  state  and  municipal  affairs,  and  which  has  not,  through  the  Presi- 
dent, the  patronage  of  Federal  posts.  It  also  includes  many  expec- 
tants belonging  to  the  party  for  the  time  being  dominant,  who  are 
earning  their  future  places  by  serving  the  party  in  the  meantime. 
All  the  above  may  fairly  be  called  professional  or  Inner  Circle 
poUticians,  but  of  their  number  I  can  form  no  estimate,  save  that 
it  must  be  counted  by  hundreds  of  thousands,  inasmuch  as  it  prac- 
tically includes  nearly  all  state  and  local  and  most  Federal  office- 
holders as  well  as  most  expectants  of  public  office.  .  .  . 

I  have  observed  that  there  are  also  plenty  of  men  engaged  in  some 
trade  or  profession  who  interest  themselves  in  politics  and  work  for 
their  party  without  any  definite  hope  of  office  or  other  pecuniary 
gain.  They  correspond  to  what  we  have  called  the  Outer  Circle 
politicians  of  Europe.  It  is  hard  to  draw  a  line  between  the  two 
classes,  because  they  shade  off  into  one  another,  there  being  many 
[persons]  who,  while  pursuing  their  regular  calling,  bear  a  hand  in 
poUtics,  and  look  to  be  some  time  or  other  rewarded  for  doing  so. 
When  this  expectation  becomes  a  considerable  part  of  the  motive  for 
exertion,  such  an  one  may  fairly  be  called  a  professional,  at  least  for 
the  time  being,  for  although  he  has  other  means  of  hvelihood,  he  is 
apt  to  be  impregnated  with  the  habits  and  sentiments  of  the  pro- 
fessional class. 

The  proportion  between  Outer  Circle  and  Inner  Circle  men  is  in 
the  United  States  a  sort  of  ozonometer  by  which  the  purity  and  health- 


THE  POLITICAL   PARTY  459 

iness  of  the  political  atmosphere  may  be  tested.     Looking  at  the  The  prop<,r- 
North  only,  for  it  is  hard  to  obtain  trustworthy  data  as  to  the  South,   ••'""  'between 
and  excluding  Congressmen,  the  proportion  of  men  who  exert  them-   and'^non"^ 
selves  in  poUtics  without  pecuniary  motive  is  largest  in  New  England,   Professional 
in  the  country  parts  of  New  York,  in  northern  Ohio,  and  the  north-   [^'111"""^ 
western  States,  while  the  professional  politicians    most  abound  in   V"'^*^^ 
the  great  cities  —  New  York,  Philadelphia,  Brooklyn,  Boston,  Bal- 
timore, Buffalo,  Cincinnati,  Louisville,  Chicago,  St.  Louis,  New  Or- 
leans, San  Francisco.    This  is  because  these  cities  have  the  largest 
masses  of  ignorant  voters,  and  also  because  their  municipal  govern- 
ments, handling  vast  revenues,  offer  the  largest  facilities  for  illicit 
gains.  .  .  . 

200.   How  the  party  influences  voters  ^ 

The  aims   and   purposes  of  the    political  party  are  various,  but   The  most 

the  most  immediate   objective  of  the  party  organization  is  to  \vin   "^ediate 

nominations  and  elections.    To  this  end  a  large  use  is  made  of  methods   party  is  to 

designed  to  influence  voters  in  favor  of  principles  and  candidates  ^'"  nomina- 

riii  r^  ,-,  11  ,..  lions  and 

put  forth  by  the   party.     Some  of   these   methods  are   legitimate,   elections. 

some  are  clearly  illegitimate.  Writing  in  1906,  Professor  Hart  de- 
scribed as  follows  the  methods  by  means  of  which  the  party  might 
influence  voters: 

(i)  The  most  ordinary  influence   on  voters  is  simple  persuasion,    v'oters 

In  some  parts  of  the  country,  especially  in  the  South,  there  is  joint  influenced 

by  means 
discussion  of  pubHc  issues,  listened  to  by  both  sides.    In  the  northern  of  (1)  simple 

states,  political  meetings  are  usually  attended  only  by  members  of   Persuasion, 

the  party  that  holds  them,  who  have  not  come  to  have  their  opinions 

changed,  but  to  have  them  confirmed. 

(2)  The  newspaper  is  of  course  of  great  influence  over  voters.    (2)  the 

Newspapers  frequently  take  new  ground,  and  sometimes  in  a  hot   "i-'wspaper, 

campaign  change  over  from  one  side  to  the  other;   but,  again,  most 

Americans  read  only  the  newspapers  of  their  own  party,  and  hear 

very  Uttle  of  the  argument  of  the  other  side.    Hence  the  importance 

of  special  campaign  literature;  for  instance,  in  1896,  the  Republican 

National  Committee  deluged  the  state  of  Iowa  with  specially  pre- 

1  From  Albert  Bushnell  Hart,  Actual  Government.    Longmans,  Green  and  Co., 
New  York,  1906;  pp.  104-106. 


460 


READINGS  IN  AMERICAN   DEMOCRACY 


(3) 
intimidation, 


(4)  violence 
at  the  polls, 


and  (s) 

bribery, 

practiced 

either 

covertly, 


or  (6) 
openly. 


pared  political  tracts,  mailed  to  individual  voters  whom  they  sup- 
posed to  be  making  up  their  minds  on  the  question  of  the  gold 
standard. 

(3)  Another  method  of  influencing  voters  is  by  inthnidation 
—  sometimes  nothing  more  than  the  disapproval  of  a  man  who  votes 
unUke  his  neighbors,  sometimes  fierce  and  cruel  personal  abuse,  some- 
times threat  of  dismissal  from  employment.  The  Austrahan  ballot 
has  been  favored  by  labor  organizations  because  it  enables  the  work- 
man to  escape  from  this  form  of  oppression,  since  it  is  almost  im- 
possible to  find  out  how  a  man  has  voted  unless  he  himself  discloses  it. 

(4)  Farther  down  still  is  the  brutal  violence  at  the  polls,  of  which 
there  have  been  many  examples  in  American  history.  The  usual 
form  is  for  friends  of  one  party  to  drive  away  the  watchers  of  the  other 
party,  or  to  threaten  voters  when  they  offer  their  ballots.  With  the 
introduction  of  metropolitan  police,  since  i860,  this  violence  has 
become  less  common  in  large  cities;  and  the  Austrahan  ballot  laws, 
which  in  many  cases  forbid  the  assemblage  of  persons  about  the 
polls,  take  away  the  pretext  of  violence.  .  .  . 

(5)  Another  too  frequent  method  is  the  corruption  of  voters. 
Bribery  is  as  old  as  votes,  —  very  frequent  in  the  Greek  and  Roman 
repubhcs;  for  half  a  century,  from  1725  to  1775,  the  recognized 
method  of  getting  a  government  majority  in  the  House  of  Commons; 
frequently  practiced  in  the  colonies;  and  to  this  day  one  of  the  most 
widespread  and  demoraUzing  influences.  The  most  subtle  form  of 
bribery  is  to  pay  a  man  on  election  day  for  peddling  tickets,  for  getting 
out  voteis,  or  for  reporting  the  vole.  .  .  .  Another  method  is  to  hire 
men  to  stay  away  from  the  polls,  one  of  the  most  dangerous  of  all 
forms  of  bribery  because  it  cannot  be  detected  by  any  ballot  device. 

(6)  Perhaps  the  baldest  form  is  to  pay  money  outright  for  votes: 
candidates  for  offices  are  often  assessed  thousands  of  dollars  for 
campaign  funds;  and  cases  have  been  known  where  they  have  gone 
from  polling-place  to  polling-place,  actually  giving  out  rolls  of  bills 
to  be  distributed  among  the  voters.  .  .  .  This  is  a  shameful  spectacle; 
and  although  in  most  communities  only  a  small  proportion  of  the 
voters  will  sell  their  birthright,  yet  that  small  proportion  may  be  just 
enough  to  turn  the  scale. 

It  is  needless  to  say  that  the  bribed  voter  is  no  voter,   that  he 


THE  POLITICAL  PARTY  461 

is  simply  a  pawn  in  the  hands  of  a  man  or  the  organization  that  pays  Bribery 
him.     In  most  states  there  are  strict  laws  against  either  giving  or   '''^'^"'^ 
receiving  bribes;    but  bribery  is  an  offence  extremely  diflicult  to  ^" '''"''*^' 
prove,  because  neither  party  desires  that  the  transaction  be  made 
public.     There  have  been  cases  in  which,  on  the  day  of  election, 
the  party  heelers  on  both  sides  have  agreed  to  divide  their  campaign 
funds,  and  let  the  floaters  cast  their  votes  uninfluenced.    Such  con- 
duct is  of  course  held  dishonorable  by  those  sensitive  people  who 
furnished  the  money. 


201.   Evils  of  the  spoils  system 


During  the  first  forty  years  of  our  national  life  it  was  tacitly  under-   Rise  of 

stood  that  subordinate  executive  officials  should  continue  in  office   ^^'^  ^'^"^ 
I     •  111-  system, 

durmg  good  behavior,  regardless  of  changes  in  the  administration. 

After  Jackson's  first  term,  however,  it  became  the  custom  for  the 

incoming  party  to  use  ofifices  to  reward  party  supporters.     Except 

where   restricted  by  the   merit  system,  each  party  has   since  that 

period  secured   control  of  government  only  to  turn  out   numerous 

office-holders  appointed  by  their  opponents,  and  to  install  members 

of  their  own  party.    The  evils  of  the  spoils  system  at  its  height  are 

described  in  the  following  extract  from  an  address  by  Carl  Schurz 

before  the  National  Civil  Service  Reform  League  in  1894: 

Looking  at  the  financial  side  of  the  matter  alone  —  it  is  certainly   Evil.s  of 

bad  enough;    it  is  indeed  almost  incomprehensible  how  the  spoils       "  ^^ 

'  '^  system  on 

system  would  be  permitted  through  scores  of  years  to  vitiate  our   the  financial 

business  methods,  .  .  .  breeding  extravagant  and  plundering  prac- 

tices  in  all  departments,  costing  our  people  in  the  course  of  time 

untold  hundreds  of  millions  of  money,  and  making  our  government 

one  of  the   most   wasteful  in  the  world.     .All  this,   I  say,  is  bad 

enough.  .  .  . 

But  the  spoils   system  has  inflicted   upon  the  American   people   Other  evils: 
injuries  far  greater  than  these. 

The  spoils  system,  that  practice  which  turns  public  ofllces,  high 
and  low,  from  public  trusts  into  objects  of  prey  and  booty  for  the 

1  From  the  National  Civil  Service  Reform  League,  Proceedings  of  the  Annual 
Meeting,  1894.     Address  by  Carl  Schurz. 


462 


READINGS  IN  AMERICAN  DEMOCRACY 


The  spoils 
system  one 
of  the  most 
evil  influ- 
ences in 
American  life. 
It  pen'erts 
political  life. 


It  debases 
the  party. 


It  creates 
the  boss 
and  the 
machine. 


It  makes 
the  office- 
holder a 
party  slave. 


It  usurps 
the  consti- 
tutional 
appointing 
power. 


victorious  party,  may  without  extravagance  of  language  be  called 
one  of  the  greatest  criminals  in  our  history,  if  not  the  greatest.  In 
the  whole  catalogue  of  our  ills  there  is  none  more  dangerous  to  the 
vitaUty  of  our  free  institutions. 

It  tends  to  divert  our  whole  political  life  from  its  true  aims.  It 
teaches  men  to  seek  something  else  in  politics  than  the  public  good. 
It  puts  mercenary  selfishness  as  the  motive  power  for  political  action 
in  the  place  of  public  spirit,  and  organizes  that  selfishness  into  a 
dominant  political  force. 

It  attracts  to  active  party  politics  the  worst  elements  of  our  pop- 
ulation, and  with  them  crowds  out  the  best.  It  transforms  political 
parties  from  associations  of  patriotic  citizens,  formed  to  serve  a 
public  cause,  into  bands  of  mercenaries  using  a  cause  to  serve  them. 
It  perverts  party  contests  from  contentions  of  opinion  into  scrambles 
for  plunder.  By  stimulating  the  mercenary  spirit  it  promotes  the 
corrupt  use  of  money  in  party  contests  and  in  elections. 

It  takes  the  leadership  of  political  organizations  out  of  the  hands 
of  men  fit  to  be  leaders  of  opinion  and  workers  for  high  aims,  and 
turns  it  over  to  the  organizers  and  leaders  of  bands  of  political  ma- 
rauders. It  creates  the  boss  and  the  machine,  putting  the  boss 
into  the  place  of  the  statesman,  and  the  despotism  of  the  machine 
in  the  place  of  an  organized  public  opinion. 

It  converts  the  public  office-holder,  who  should  be  the  servant  of 
the  people,  into  the  servant  of  a  party  or  of  an  influential  pohtician, 
extorting  from  him  time  and  work  which  should  belong  to  the  public, 
and  money  which  he  receives  from  the  public  for  public  service.  It 
corrupts  his  sense  of  duty  by  making  him  understand  that  his  obliga- 
tion to  his  party  or  his  political  patron  is  equal  if  not  superior  to  his 
obligation  to  the  public  interest,  and  that  his  continuance  in  office 
does  not  depend  on  his  fidelity  to  duty.  It  debauches  his  honesty 
by  seducing  him  to  use  the  opportunities  of  his  office  to  indemnify 
himself  for  the  burdens  forced  upon  him  as  a  party  slave.  .  .  . 

It  falsifies  our  constitutional  system.  It  leads  to  the  usurpation, 
in  a  large  measure,  of  the  executive  power  of  appointment  by  members 
of  the  legislative  branch.  ...  It  subjects  those  who  exercise  the 
appointing  power,  from  the  President  of  the  United  States  down, 
to  the  intrusion  of  hordes  of  office  hunters  and  their  patrons,  who 


THE  POLITICAL  PARTY  463 

rob  them  of  the  time  and  strength  they  should  devote  to  the  public 
interest.  .  .  . 

It  keeps  in  high  political  places,  to  the  exclusion  of  better  men,   it  substi- 
persons  whose  only  ability  consists  in  holding  a  personal  following   '^"^.f^.  J 
by  adroit  manipulation  of  the  patronage.    It  has  thus  sadly  lowered   for  ihc 
the  standard  of  statesmanship  in  pubUc   position,  compared  wilh   ^^^'■'•■•'''"^"• 
the  high  order  of  ability  displayed  in  all  other  walks  of  life. 

It  does  more  than  anything  else  to  turn  our  large  municipalities   It  throws 
into  sinks  of  corruption,  to  render  Tammany  Halls  possible,  and  to     j^"  ^  ,"^" 
make  of  the  police  force  here  and  there  a  protector  of  crime  and  a  cability  of 
terror  to  those  whose  safety  it  is  to  guard.    It  exposes  us,  by  the  scan-   j^sl^^iions 
dalous  spectacle  of  its  periodical  spoils  carnivals,  to  the  ridicule  and 
contempt  of  civiUzed  mankind,  promoting  among  our  own  people 
the  growth  of  serious  doubts  as  to  the  practicability  of  democratic 
institutions  on  a  great  scale.  .  .  . 

202.   The  Civil  Service  Act  of  1883  ^ 

The  evils  which  Mr.  Schurz  outlined  in  1894  have  since  been  re-  in  1883, 
duced  by  state  and  Federal  legislation.     A  pioneer  law  was  the  Civil   ^""J^^^^^ 
Service  Act  passed  by  Congress  as  early  as  1883,  for  the  purpose  of   civil 
removing  from  partisan  control  a  large  number  of  routine  and  sub-   Service  Act. 
ordinate    offices    in    the    national    administration.     The  more   un- 
portant  clauses  of  this  act  are  as  follows: 

Be  it  enacted  by  the  Senate  and  House  of  Representatives  of  the  United 
States  of  America  in  Congress  assembled, 

That  the  President  is  authorized  to  appoint,  by  and  with  the  ad-   a  Civil 
vice  and  consent  of  the  Senate,  three  persons,  not  more  than  two  of   Commission 
whom  shall  be  adherents  of  the  same  party,  as  Civil  Service  Com-   created, 
missioners,  and  said  three  Commissioners  shall  constitute  the  United 
States  Civil  Service  Commission.    Said  Commissioners  shall  hold  no 
other  ofj&cial  place  under  the  United  States.     The  President  may 
remove   any   Commissioner,    and  any   vacancy  in  the   position  of 
Commissioner  shaU  be  so  filled  by  the  President,  by  and  with  the  ad- 
vice and  consent  of  the  Senate,  as  to  conform  to  said  conditions  for 
the  first  selection  of  Commissioners.  .  .  . 

1  From  the  Statutes  of  the  United  Stales,    Civil  Service  Act  of  1883.  Preamble 
and  Section  2. 


Duty  of  the 
Commission. 


Eight 

fundamental 

rules 

laid  down. 


464  READINGS  IN  AMERICAN  DEMOCRACY 

Sec.  2.    That  it  shall  be  the  duty  of  said  Commissioners: 

First.  To  aid  the  President,  as  he  may  request,  in  preparing 
suitable  rules  for  carrying  this  act  into  effect,  and  when  said  rules 
shall  have  been  promulgated  it  shall  be  the  duty  of  all  ofificers  of  the 
United  States  in  the  departments  and  offices  to  which  any  such  rules 
may  relate  to  aid,  in  aU  proper  ways,  in  carrying  said  rules,  and  any 
modifications  thereof,  into  effect. 

Second.  And,  among  other  things,  said  rules  shall  provide  and 
declare,  as  nearly  as  the  conditions  of  good  administration  will  war- 
rant, as  follows: 

(a)  For  open,  competitive  examinations  for  testing  the  fitness  of 
applicants  for  the  public  service  now  classified  or  to  be  classified 
hereunder.  Such  examinations  shall  be  practical  in  their  character, 
and  so  far  as  may  be  shall  relate  to  those  matters  which  will  fairly 
test  the  relative  capacity  and  fitness  of  the  persons  examined  to  dis- 
charge the  duties  of  the  service  into  which  they  seek  to  be  appointed. 

{b)  That  all  the  offices,  places,  and  employments  so  arranged  or 
to  be  arranged  in  classes  shall  be  filled  by  selections  according  to 
grade  from  among  those  graded  highest  as  the  results  of  such  com- 
petitive examinations. 

(c)  Appointments  to  the  public  service  aforesaid  in  the  depart- 
ments at  Washington  shall  be  apportioned  among  the  several  states 
and  territories  and  the  District  of  Columbia  upon  the  basis  of  popu- 
lation as  ascertained  at  the  last  preceding  census.  Every  application 
for  an  examination  shall  contain,  among  other  things,  a  statement, 
under  oath,  setting  forth  his  or  her  actual  bona  fide  residence  at 
the  time  of  making  the  application,  as  well  as  how  long  he  or  she 
has  been  a  resident  of  such  place. 

{d)  That  there  shall  be  a  period  of  probation  before  any  absolute 
appointment  or  employment  aforesaid. 

(e)  That  no  person  in  the  public  service  is  for  that  reason  under 
any  obligations  to  contribute  to  any  political  fund,  or  to  render  any 
political  service,  and  that  he  will  not  be  removed  or  otherwise  preju- 
diced for  refusing  to  do  so. 

(/)  That  no  person  in  said  service  has  any  right  to  use  his  official 
authority  or  influence  to  coerce  the  political  action  of  any  person 
or  body. 


THE  POLITICAL  PARTY  465 

(g)  There  shall  be  noncompetitive  examinations  in  all  proper 
cases  before  the  Commission,  when  competent  persons  do  not  com- 
pete, after  notice  has  been  given  of  the  existence  of  the  vacancy, 
under  such  rules  as  may  bo  prescribed  by  the  Commissioners  as 
to  the  manner  of  giving  notice. 

(h)  That  notice  shall  be  given  in  writing  by  the  appointing  power 
to  said  Commission  of  the  persons  selected  for  appointment  or  em- 
ployment from  among  those  who  have  been  examined,  of  the  place 
of  residence  of  such  persons,  of  the  rejection  of  any  such  persons  after 
probation,  of  transfers,  resignations,  and  removals,  and  of  the  date 
thereof,  and  a  record  of  the  same  shall  be  kept  by  said  Commission. 

And  any  necessary  exception  from  said  eight  fundamental  pro-   Exceptions 
visions  of  the  rules  shall  be  set  forth  in  connection  with  such  rules,   ^°  ^^    . 
and  the  reasons  therefor  shall  be  stated  in  the  annual  reports  of  the 
Commission.  ... 

203.   Legal  regulation  of  campaign  contributions ' 
A  few^  decades  ago  it  was  the  custom  of  poUtical  parties  not  only   Misuse  of 
to  accept  large  sums  of  money  from  special  interests,  but  actually   p^^\^^^nj 
to  demand  substantial  contributions  from  railroad  and  other  cor-   has  led  to 
porations  on  pain  of  unfriendly  legislation  when  the  party  got  into    [e|J^|^[|o^ 
power.     In  many  cases  gambling  houses  and  other  illegal  businesses 
contributed  heavily  to  the  campaign  fund,  with  the  understanding 
that  the  party  so  supported  would,  if  placed  in  power,  favor  the  con- 
tributing interests.      The  abuse  of  the  privilege  of  contributing  to 
the  campaign  fund  has  recently  led  to  more  and  more  legislation 
regulating  the  financial  activities  of  the  party.    The  following  descrip- 
tion of  the  election  laws  of  New  York  and  Wisconsin  will  give  an 
idea  of  this  type  of  legislation: 

[The  New  York  law,  enacted  1890  and  amended  in  1906  and  1907]:    The  New 
[The  law]  defines   poHtical   committees  and  provides  that  any   gy"!^.,.„f„'^ 
person  who,  to  promote  the  election  or  defeat  of  a  candidate,  con-   contributions 
tributes  or  expends  money  other  than  through  the  agency  of  a  po-   ^^^p^j^^ 
litical  committee  or  candidate,  shall  file  the  statement  required  of   fund  of 

political 

political  committees.  parties. 

1  From  Senate  Documents,  Sixtieth  Congress,  First  Session,  1907-190S.     No. 
337.     Publicity  oj  Election  Contributions  and  Expenditures;  pp.  12-13,  17-18. 


466 


READINGS  IN  AMERICAN  DEMOCR.\CY 


Statement 
of  receipts 
and 
expenditures. 


Penalties. 


Important 
provisions 
of  the 
Wisconsin 
law. 


Every  political  committee  is  required  to  have  a  treasurer  who 
shall  keep  detailed  accounts  of  its  contributions  and  expenditures. 
No  money  may  be  received  by  or  on  behalf  of  such  committee  until 
it  shall  have  chosen  a  treasurer. 

Within  five  days  after  the  choice  of  such  treasurer  there  must  be 
filed  a  statement  of  his  address  signed  by  three  members  of  the 
committee. 

Whoever  receives  any  money  on  behalf  of  a  political  committee 
must  give  to  the  treasurer  of  the  committee  a  detailed  account  of 
the  same.  Every  payment  in  excess  of  $5  must  be  vouched  for  by 
a  receipted  bUl  and  every  voucher  must  be  kept  fifteen  months. 

Treasurers  of  committees  must  within  twenty  days  after  election 
file  a  detailed  statement  of  the  receipts  and  expenditures  of  the  com- 
mittee. In  each  case  it  shall  include  the  amount  received,  the  name 
of  the  person  or  committee  from  whom  received,  the  date  of  its  re- 
ceipt, the  amount  of  every  expenditure  or  disbursement  exceeding 
five  dollars,  the  name  of  the  person  or  committee  to  whom  it  was 
made,  and  the  date  thereof;  and  unless  such  expenditure  or  disburse- 
ment shall  have  been  made  to  another  political  committee  it  shall 
state  clearly  the  purpose  of  such  expenditure  or  disbursement. 

No  person  is  permitted  to  contribute  to  a  political  committee  in 
any  name  other  than  his  own,  nor  can  such  committee  knowingly 
receive  any  contributions  under  fictitious  names. 

All  statements  must  be  filed  and  preserved  for  fifteen  months  in 
the  office  of  the  secretary  of  state,  who  must  provide  blanks.  .  .  . 

Failme  to  file  a  statement  or  the  making  of  a  false  or  incomplete 
statement  with  "wilful  intent  to  defeat  the  provisions"  of  the  act 
is  punishable  by  a  fine  of  not  exceeding  $1,000  or  imprisonment  for 
not  more  than  one  year  or  both.  .  .  . 

[The  Wisconsin  law,  enacted  1897,  and  amended  in  1905  and  1907]: 

This  Act,  which  is  one  of  the  best-considered  measures  upon  the 
subject,  provides  that  the  election  expenses  of  candidates  shall  be 
filed  in  detail  thirty  days  after  the  election,  the  purposes  and  amount 
of  each  expenditure  being  stated:  All  statements  so  filed  must  be 
kept  open  for  public  inspection  for  a  year.  The  penalty  for  viola- 
tion of  this  provision  is  a  fine  of  not  less  than  $100  nor  more  than 
$500.    Political  committees  are  defined  and  required  to  maintain  a 


THE  POLITICAL  PARTY  467 

treasurer.  .  .  .  Treasurers  of  political  committees  are  required  to 
keep  detailed  accounts  of  receipts  and  expenditures  and  to  file  sworn 
statements  thereof.    This  statement  must  be  kept  one  year. 

Any  violation  of  the  provisions  of  the  Act  by  a  treasurer  is  punish-  Penalties, 
able  by  a  fine  but  not  by  imprisonment  unless  he  fails  to  keep  correct 
books  of  account  with  intent  to  conceal  receipts  or  disbursements, 
or  the  person  from  whom  or  the  object  for  which  they  have  been 
received  or  expended,  or  to  conceal  the  existence  of  an  unpaid  debt, 
or  if  he  mutilates  or  destroys  such  accounts  with  intent  to  conceal, 
or  if  he  fails  to  make  the  required  statement  within  five  days  after 
he  shall  receive  notice  in  writing,  signed  by  five  resident  freeholders, 
requiring  him  to  file  such  statement.  Upon  conviction  of  the  latter 
class  of  offenses  he  must  be  imprisoned  for  not  less  than  two  or  more 
than  six  months. 

This  Act  was  amended  in  1905,  providing  in  greater  detail  for  the   The 
filing  of  statements  of  expenditures  by  candidates  and  for  blanks   I'aw'^amc'ndcd 
for  that  purpose.    It  was  made  the  duty  of  officers  with  whom  nomina-   in  1905 
tion  papers  or  certificates  of  election  are  filed  to  publish  Usts  of  can- 
didates failing  to  file  statements  and  to  transmit  such  lists  to  the 
attorney-general  for  prosecution   under  penalty  of  a  fine. 

In  1907  life-insurance  companies  were  required  to  make  report   and  in  1907. 
to  the  commissioner  of  insurance  of  all  contributions  njade  for  f)0- 
litical  purposes,  and  corporations  were  .  .  .    prohibited  from  making 
any  contributions  for  that  purpose  under  stringent  penalties,  mak- 
ing it  a  felojiy  to  aid,  advise,  or  abet  violations  of  this  provision. 


204.   Legal  recognition  of  the  political  party  ^ 

^he  poHtical  party  sprang  up  in  the  United  States  as  a  voluntary   The  law  has 
association,  without  legal  basis  or  warrant.     However,  the  law  has   ^^  '^^^  ^^nv 
taken  notice  of  the  party  in  two  ways.     In  the  firs  '  place,  there    in  two  ways, 
has  been  an  increasing  amount  of  legislation  aimed  at  the  suppression 
or  regulation  of  certain  practices  of  the  political  party.    In  the  second 
place,  there  has  been,  in  some  sections  at  least,  legal  recognition 
of  the  fundamental  services  of  the  party.     The  value  of  the  properly 

1  From  the  Statutes  of  the  State  of  Oregon,  Election  Law,  1907.     Preamble. 


468 


READINGS  IN  AMERICAN  DEMOCRACY 


The  party 
is  a  useful 
and 

necessary 
institution. 


Party 
govern- 
ment is 
desirable. 


Rights  of 
the  political 
party  in 
the  exercise 
of  which  it 
ought  to  be 
protected. 


regulated  party  is  recognized  by  Oregon  in  the  preamble  to  its  elec- 
tion law  of  1907,  as  follows: 

Under  our  form  of  government,  political  parties  are  useful  and 
necessary  at  the  present  time.  It  is  necessary  for  the  public  welfare 
and  safety  that  every  practical  guaranty  shall  be  provided  by  law 
to  assure  the  people  generally,  as  well  as  the  members  of  the  several 
parties,  that  political  parties  shall  be  fairly,  freely,  and  honestly 
conducted,  in  appearance  as  well  as  in  fact. 

The  method  of  naming  candidates  for  elective  public  offices  by 
political  parties  and  voluntary  political  organizations  is  the  best 
plan  yet  found  for  placing  before  the  people  the  names  of  qualified 
and  worthy  citizens  from  whom  the  electors  may  choose  the  officers 
of  our  government.  The  government  of  our  state  by  its  electors  and 
the  government  of  a  poUtical  party  by  its  members  are  rightfully 
based  on  the  same  general  principles.  Every  political  party  and  every 
voluntary  poHtical  organization  has  the  same  right  to  be  protected 
from  the  interference  of  persons  who  are  not  identified  with  it  as 
its  known  and  publicly  avowed  members,  that  the  government  of 
the  state  has  to  protect  itself  from  the  interference  of  persons  who 
are  not  known  and  registered  as  its  electors. 

It  is  as  great  a  wrong  to  the  people,  as  well  as  to  the  members  of 
a  political  party,  for  one  who  is  not  known  to  be  one  of  its  members 
to  vote  or  take  any  part  at  any  election  or  other  proceedings  of  such 
political  party,  as  it  is  for  one  who  is  not  a  qualified  and  registered 
elector  to  vote  at  any  state  election  or  take  any  part  in  the  business 
of  the  state. 

Every  poUtical  party  and  voluntary  political  association  is  right- 
fully entitled  to  the  sole  and  exclusive  use  of  every  word  of  its  official 
name.  The  people  of  the  state  and  the  members  of  every  political 
party  and  voluntary  poUtical  organization  are  rightfully  entitled  to 
know  that  every  person  who  offers  to  take  any  part  in  the  affairs 
or  business  of  any  poUtical  party  or  voluntary  poUtical  organiza- 
tion in  the  state  is  in  good  faith  a  member  of  such  party.  The  reason 
for  the  law  which  requires  a  secret  baUot  when  aU  the  electors  choose 
their  officers,  equaUy  requires  a  secret  ballot  when  the  members  of  a 
party  choose  their  candidates  for  public  office.  It  is  as  necessary 
for  the  preservation  of  the  pubUc  welfare  and  safety  that  there  shall 


THE  POLITICAL  PARTY  469 

be  a  free  and  fair  vote  and  an  honest  count,  as  well  as  a  secret  ballot 
at  primary  elections,  as  it  is  that  there  shall  be  a  free  and  fair  vote 
and  an  honest  count  in  addition  to  the  secret  ballot  at  all  elections 
of  public  officers.  All  qualified  electors  who  wish  to  serve  the  people 
in  an  elective  public  office  are  rightfully  entitled  to  equal  opportuni- 
ties under  the  law.  The  purpose  of  this  law  is  better  to  secure  and 
to  preserve  the  rights  of  political  parties  and  voluntary  political  or- 
ganizations, and  their  members  and  candidates,  and  especially  of  the 
rights  above  stated.  .  .  . 

Questions  on  the  foregoing  Readings 

1.  What  does  Lord  Bryce  mean  by  the  "  Inner  Circle"  of  the  political 

party? 

2.  What  Federal  office-holders  are  included  in  this  Inner  Circle? 

3.  To  what  extent  are  state  officials  included  in  this  group? 

4.  Name  some  other  individuals  who  may  be  members  of  the  Inner 

Circle. 

5.  What  is  meant  by  the  Outer  Circle  in  partj^  politics? 

6.  Explain  how  the  class  of  professional  party  workers  may  grade 

into  the  class  of  non-professional  workers. 

7.  What  is  the  most  important  of  the  immediate  aims  of  the  party? 

8.  Explain  the  extent  to  which  voters  are  influenced  by  (i)  simple 

persuasion,  and  (2)   the  newspaper. 

9.  What,  according  to  Professor  Hart,  is  the  extent  of  intimidation 

of  voters  in  this  country? 

10.  Summarize    Professor    Hart's   conclusions   as    to    the   practice   of 

bribery  in  the  United  States. 

11.  When  did  the  spoils  system  first  develop  in  national  politics? 

12.  What  are  some  of  the  evils  of  the  spoils  sj-stem  from  the  financial 

side? 

13.  How  has  the  spoils  system,  perverted  political  life  and  debased 

the  political  party? 

14.  What  is  the  relation  of  the  spoils  system  to  the  existence  of  the 

political  boss  and  machine? 

15.  What  does  ]Mr.   Schurz   mean  by  the  statement   that  the  spoils 

system  converts  the  public  office-holder  into  a  party  slave? 

16.  How  does  the  spoils  system  usurp  the  constitutional  appointing 

power? 

17.  What  is  Mr.  Schurz's  conclusion  as  to  the  evil  effects  of  the  spoils 

system? 

18.  Why  was  the  Civil  Service  Act  of  1883  passed? 


470  READINGS  IN  AIMERICAN  DEMOCR.\CY 

19.  What  is  the  nature  of  the  Commission  created  by  the  Act? 

20.  What  are  the  eight  fundamental  rules  under  which  the  Commission 

operates? 

21.  What   type   of   legislation   is   reducing   the   evils   which   formerly 

attended  contributions  to  the  campaign  fund  of  political  parties? 

22.  Summarize  the  election  laws  of  New  York  with  regard  to  con- 

tributions to  the  campaign  fund. 

23.  What   facts   must   be   contained   in    the   statement   of   campaign 

contributions  which  is  filed  with  the  secretary  of  state  in  New 
York? 

24.  What  becomes  of  these  statements? 

25.  In  what  two  ways  has  the  law  recognized  the  political  party? 

26.  Summarize   the   preamble   to   the    election    law   of   Oregon   with 

respect  to  the  desirability  of  party  government. 

27.  In  the  enjoyment  of  what  rights  is  the  political  party  to  be  pro- 

tected by  law? 


CHAPTER  XXXV 

CHOOSING   THE  AGENTS   OF   GOVERNMENT 

205.   Essentials  of  a  primary  election  law  ^ 

Various  methods  of  choosing  party  candidates  have  predominated   Rise  and 

at  different  periods  in  our  history.    An  early  method  was  the  caucus,   ^™'"'^  °' 

"l  •'  '    the  caucus 

but  after  1825  the  caucus  dechned  and  the  nominating  convention   and  nomi- 

became  important.     The  convention  was  an  improvement  upon  the   "^""^  . 

^  r-  I  convention. 

caucus,  but  was  itself  subject  to  so  many  defects  that  in  the  latter  part 
of  the  nineteenth  century  new  methods  of  choosing  party  candidates 
were  developed.  Of  these  new  methods  one  of  the  most  important 
and  widespread  is  the  Direct  Primary.  Every  state  in  the  Union  Direct 
has  enacted  legislation  to  fix  the  form,  and  to  protect  the  adminis-  " 
tration,  of  the  Direct  Primary,  though  such  legislation  is  not  adequate 
in  every  state.  The  essential  features  of  a  good  primary  law  are 
enumerated  by  Professor  Woodburn  in  the  following  passage: 

To  the  successful  working  of  a  good  primary  election  law  the  follow- 
ing features  are  considered  essential: 

1.  The  primary  elections  of  all  parties  should  be  held  together   The  pri- 

1       .  •  1  1  rri.        •  1      1  f    marics  of 

m  every  election  precmct  on  the  same  day.     The  tune  and  place  ot   ^n  parties 
these  elections  should  be  fixed  by  law  and  not  left  to  be  determined   should  be 
by  party  committees.    In  this  way  the  election  day  will  be  known,   s^me  day. 
the  polling  places  will  be  fixed  and  not  precarious;   machine  gerry- 
mandering and  snap  primaries  will  be  prevented;    and   the  voters 
of  one  party  will  be  prevented  from  packing  the  primary  of  the  other 
for  the  purpose  of  nominating  weak  candidates  for  their  opponents. 

2.  A  good  registration  law.    The  party  voters  must  be  registered   R«-'g'stration. 
a  certain  number  of  days  before  the  primary.     Careful  registration 

always  tends  to  promote  fair  elections. 

1  From  James  Albert  Woodbuni,  Political  Parties  and  Parly  Problems  in  the 
United  States.    G.  P.  Putnam's  Sons,  New  York,  1903;  pp.  285-287. 

471 


472 


READINGS  IN  AMERICAN   DEMOCRACY 


Legal  pro- 
tection of 
the  party 
against  the 
unfair  prac- 
tices of 
members 
of  other 
parties. 


Kccognition 
of  the 
independent 
voter. 


Use  of  the 
AuslraUan 
ballot. 


Other 
features 
of  a  good 
primary 
election  law. 


3.  The  right  to  vote  at  a  party  primary  should  be  secured  against 
fraud  by  the  registration  of  the  party  afi&liation,  or  preference,  of 
all  voters  who  seek  to  vote  at  the  primary.  No  opponent  of  a  party 
has  a  right  to  participate  in  its  primary.  The  law  should  protect 
a  party  from  its  enemies  who  may  seek  to  disrupt  or  weaken  it.  The 
test  of  party  membership,  or  party  fealty,  is  the  most  difficult  matter 
in  framing  primary  election  laws.  Experience  shows  that  liberality 
in  this  direction  should  be  encouraged.  It  is  not  necessary,  nor 
is  it  generally  desired  by  party  managers,  to  shut  out  the  independent 
element  within  a  party.  It  is  not  necessary  to  apply  hard  party 
tests  or  a  cast-iron  pledge  to  support  the  nominees.  Self-respecting 
men  will  not  seek  to  vote  in  the  primary  of  a  party  to  which  they 
are  not  attached,  and  the  unscrupulous  will  do  so  in  the  face  of 
pledges  which  they  will  unhesitatingly  violate.  .  .  . 

With  the  primaries  of  all  parties  on  the  same  day,  the  voters  of 
each  party  will  be  led  to  give  their  attention  to  their  own  nominations. 
The  primary  system  is  no't  to  destroy  parties,  but  it  implies  that 
the  party  is  not  merely  its  managers,  its  machine,  but  the  whole  body 
of  its  voters.  The  independent  voter  should  recognize  that  the  regis- 
tration of  a  voter's  party  affiliation,  as  the  Kentucky  law  requires, 
is  a  desirable  protection  to  the  party  organization.  Very  few  would 
object  to  stating  their  party  alfiliation,  if  other  information  and 
pledges  as  to  the  voter's  past  and  future  are  not  exacted.  If 
this  seems  to  a  voter  to  violate  his  independence  he  may  either 
refrain  from  voting  at  the  primary,  or  other  provision  may  be  made 
for  him. 

4.  The  Australian  secret-ballot  system  of  voting  should  be  used 
in  the  primary  as  in  the  regvdar  election  day.  AH  the  ordinary  safe- 
guards of  the  law  should  be  placed  around  the  primary  election.  All 
trickery  and  personal  and  party  favoritism  in  choosing  election  judges 
and  clerks  should  be  reduced  to  a  minimum.  .  .  . 

Other  minor  features  urged  by  primary  election  advocates  are: 
(i)  The  application  of  the  law  should  be  made  mandatory  and  not 
be  left  to  the  option  of  party  committees.  Primary  elections  should 
be  under  state  control,  not  under  party  control.  (2)  The  rotation 
of  names  in  the  printed  ballots.  Any  name  appearing  first  in  all 
the  ballots  would  have  a  manifest  advantage.     The  unknowing  and 


CHOOSING  THE  AGENTS  OF  GOVERNMENT  473 

indifferent  voters  are  apt  to  vote  for  the  first  on  the  Hst.  In  a  poll 
of  fifteen  or  twenty  thousand  votes  the  first  place  is  probably  worth 
one  thousand  votes  to  a  candidate.    Fairness  requires  rotation.  .  .  . 

206.   The  non-partisan  ballot^ 

The  non-partisan  ballot  is  a  ballot  on  which  names  may  be  placed  Nature  and 
without  party  designations.     This   system  came  into   use  between  P^'^Po^'-"  "^ 
1880  and  1890,  and  was  intended  to  reduce  the  influence  of  the  party   partisan 
machine.     It  provides  that  candidates  may  be  placed  in  nomina-   '^^''"^• 
tion  by  filing  with  some  specified  ofiicer  nomination  papers,  or  peti- 
tions, signed  by  a  specified  number  of  voters.     The  merits  of  this 
device  are  debated,  but  in  many  cities  it  has  undoubtedly  reduced 
partisanship  to  the  minimum.    A  favorable  view  of  the  non-partisan 
ballot  in  Des  Moines,  Iowa,  is  given  in  the  following  selection  by 
Former  Mayor  James  R.  Hanna: 

Under  the  Iowa  law,  any  citizen  who  c^n  secure  the  signatures  of  The  cir- 

twenty-five  of  his  fellow  citizens  to  a  statement  of  his  honorable   *^"'=^V''"  °^ 

petitions 

standing  in  the  community,  may  become  a  candidate  for  mayor  or   under  the 
commissioner.     In  our  three  campaigns  this  ease  of  candidacy  has      ""^ 
been  taken  advantage  of  by  great  numbers  and  there  have  been 
always  from  thirty  to  more  than  fifty  aspirants  to  civic  honors. 

Coincident  with  the  introduction  of  the  Des  Moines  plan  into  our   Introduction 
city  affairs  there  sprang  up,  all  over  the  city,  neighborhood  organiza-   ^  *^  ^j  •»  - 
tions  of  voters  under  the  title  of  improvement  leagues,  etc.  .  .  .    plan. 
When  the  campaign  ...  is  well  under  way,  the  various  candidates 
are  invited  to  appear  before  these  leagues  to  present  their  claims  to 
the  suffrage  of  the  voters.  .  .  . 

At  these  meetings,  the  various  candidates,  owing  to  the  number   Candidates 
that  are  to  speak,  find  it  necessary  to  present  their  claims  to  con-   ^,^^'j^"  ^,  '^" 
sideration  in  talks  of  not  to  exceed  ten  or  twelve  minutes.    A  speaker   the  voters, 
must  make  his  impression  upon  his  hearers  in  very  short  order.  .  .  . 
In  the  rapid  review  of  candidates,  the  audience  is,  in  each  case,  de- 
ciding on  about  three  things.    They  decide  first  as  to  whether  the 
speaker  knows  what  he  is  talking  about.     In  other  words,  they  esti- 

>  From  the  National  Munidpal  Review,  Vol.  11,  No.  4-    October,  lOi.V    James 
R.  Hanna,  "Municipal  Elections  in  Des  Moines,  Iowa";  pp.  654-657. 


474 


READINGS  IN  AMERICAN  DEMOCRACY 


The  influ- 
ence of 
personality. 


Elimination 
of  sectional 
or  ward 
influence. 


mate  his  intellectual  alertness  and  the  soundness  of  judgment. 
Second,  they  decide  upon  the  earnestness  of  purpose,  or  conviction, 
with  which  the  candidate  seems  to  present  his  issues.  And  finally- 
having  weighed  the  intelligence  and  sincerity  of  the  candidate,  they 
put  an  estimate  upon  his  courage  or  determination  of  purpose  which 
will  or  will  not  lead  him  to  carry  into  effect  the  policies  which  he 
professes  to  stand  for. 

The  candidate  who  impresses  his  hearers  that  he  knows  what  he 
is  talking  about,  that  he  means  what  he  says,  and  that  he  has  the 
courage  in  the  hour  of  trial  to  stand  for  what  he  advocates,  generally 
has  the  right  of  way  to  the  voters'  suffrage,  provided  of  course  that 
his  position  on  the  issues  of  the  campaign  appeals  to  the  voter  as 
being  sound.  ... 

Even  those  who  may  not  have  attended  the  league  meetings  very 
faithfully  during  the  six  weeks  campaign  have  heard  the  neighbor- 
hood discussion  concerning  the  candidates.  Opinion  in  the  vicinity 
is  very  clearly  outlined.  Municipal  issues  and  the  personality  of 
the  candidate  enter  with  somewhat  varying  proportions  into  the  com- 
position of  the  neighborhood  opinion.  If  there  are  striking  mu- 
nicipal issues  upon  which  the  people  may  divide,  this  has  a  large  bear- 
ing upon  the  fortunes  of  the  candidates.  If,  however,  municipal 
issues  are  not  pronounced,  the  personality  of  the  candidate  has  a  very 
large  determining  force.  Indeed,  with  the  impossibility  of  organizing 
candidates  into  groups,  each  group  standing  upon  a  given  platform, 
the  personality  of  the  candidate  has  fully  as  much  to  do  with  his 
advancement  as  the  issues  for  which  he  stands.  .  .  . 

Another  feature  of  our  campaigns  is  the  entire  absence  of  sectional 
or  ward  influence.  The  candidate  must  face  the  entire  electorate 
of  the  city  upon  the  issues  and  interests  of  the  entire  city.  He  cannot 
go  mto  one  ward  advocating  measures  for  the  good  of  that  ward 
alone  without  incurring  the  hostility  of  the  voters  in  other  wards. 
The  consequence  is  that  the  residence  of  the  candidate  is  no  longer 
inquired  after,  though  at  first  there  was  considerable  jealousy  over 
this  point.  One  who  is  not  broad  enough  to  be  a  citizen  of  the  entire 
city  has  small  hope  of  convincing  a  majority  of  the  voters  of  the  entire 
city  of  his  fitness  to  participate  in  the  determination  of  municipal 
poUcies  as  a  member  of  the  city  council.  .  .  . 


CHOOSING  THE  AGENTS  OF  GOVERNMENT  475 

The  laws  providing  that  no  pre-election  promises  shall  be  made,    Financial 
and  that  no  one  may  give  or  receive  money  for  personal  assistance  P''"^*-"ci'on 
in  the  campaign,  have  a  salutary  effect.    It  is  a  great  protection  to 
the  candidate  to  say  that  he  cannot  give  money  or  make  promises 
for  any  assistance.    It  reUeves  him  of  the  incubus  of  the  ward  heeler 
and  the  political  grafter.  .  .  . 

The  ability  and  character  of  the  men  who  are  finally  successful   .•Mjle  men 
in  the  election  is  very  good.     Only  men  of  superior  ability  and  fair   ^^°^^  "" 
repute,  who  are  able  to  contend  before  20,000  voters  and  undergo   partisan 
their  scrutiny,  can  be  successful.  .  .  . 


ballot. 


207,   Adequate  representation  of  the  majority  ^ 
How  can  we  make  certain  that  an  individual  nominated  or  elected  jo 


secure 


represents  a  majority  of  those  voting?     When  there  are  only  two   ^^'^  adequate 

represcnta- 
candidates,  the  one   receiving   the  larger  number  of  votes  receives   tion  of  the 

both  a  plurality  and  a  majority,  but  when  there  are  several  candi-   i"''Jo"ty. 
^  ■'  J        ji  ^^^  prcfiT- 

dates,  the  victor  may  have  received  the  sanction  of  only  a  small   cntial  voting 
minority  of  those  voting.     This  means  that  the  chosen  official  rep-  ^^vice  has 
resents  a  minority,  and  that  the  majority  are  not  adequately  repre-  forward, 
sented.     To  remedy  this  defect,  several  devices  have  been  suggested, 
among  them  the  preferential  ballot.     How  one  type  of  preferential 
voting   works  is  explained  by  Mr.  Reginald  Mott  Hull  in  the  fol- 
lowing passage: 

In  the  method  of  voting  proposed  in    Cambridge  [Mass.,]  any   xhe 

fifty  voters  could  secure  a  place  on  the  final  ballot  for  the  name  of   proposed 

•'  '^  _  .  Cambndge 

their  nominee  for  any  elective  office.     Election  is  by  the  city  at   plan  in- 
large,  to  a  highly  paid,  conspicuous  position  for  a  three  year  term.   cl"di-d  pro^ 
with  no  party  designation,  no  primary,  and,  after  the  first  year,  with   short  and 
never  more  than  two  offices  in  the  city  council  to  be  filled  annually.   3^'^*'^'*^ 
Every  candidate  stands  on  his  own  feet,  —  no  boss  dictates  who 
shall,  or  shall  not  run.    The  man  who  can  survive  this  test  must 
win  on  his  own  merit,  and  not  merely  drift  into  office  on  a  party 
label  unknown  to  most  of  his  fellow  citizens. 

The  preferential  ballot  enables  the  voters  of  the  city  in  one  elec- 

1  From  the  National  Municipal  Revin;  Vol.  i,  No.  3.  July,   1012.     Reginald 
Mott  Hull,  "Preferential  Voting  and  How  It  Works";  pp.  387-388. 


476 


READINGS  IN  AMERICAN   DEMOCRACY 


The  prefer- 
ential ballot 
makes  pos- 
sible a  ma- 
jority choice, 
or  at  least 
a  legitimate 
plurality 
choice. 


How  the 
preferential 
ballot  is 
arranged. 


How  the 
successful 
candidate  is 
ascertained. 


Evib  of 
the  present 
system. 


tion  to  arrive  at  a  majority  choice  irrespective  of  the  number  of 
candidates,  provided  there  is  anyone  in  the  hst  of  candidates  ac- 
ceptable to  a  majority.  If  there  is  none  such  in  the  Ust,  it  is  obviously 
not  the  fault  of  the  preferential  ballot.  Besides,  we  get  the  next 
best  thing  and  the  only  thing  possible  with  such  a  list  of  nominees, 
a  legitimate  plurality  election;  i.e.  a  plurality  election  based  on  a 
full  and  free  expression  of  choice  by  the  voters  in  place  of  the  cus- 
tomary one  in  which  a  voter  with  only  one  choice  must  vote  against 
aU  the  candidates  but  one,  though  there  may  be  several  excellent 
names  in  the  list.  .  .  . 

The  modem  preferential  ballot  is  arranged  like  the  ordinary 
Australian  ballot,  except  that  instead  of  one  column  for  crosses  there 
are  three  provided,  headed  "first  choice,"  "second  choice,"  and  "other 
choices"  respectively.  The  voter  places  a  cross  in  the  first  column 
after  the  name  of  his  first  choice  for  that  ofiice,  and  in  the  second 
column  after  the  name  of  his  second  choice.  If  there  are  others  ac- 
ceptable, and  still  others  quite  undesirable,  the  voter  will  place 
a  cross  after  all  the  other  acceptable  men  in  the  third  column.  This 
means  that  he  not  only  has  the  opportunity  to  vote  for  all  the  good 
men,  but  also  thus  against  all  the  undesirable  ones. 

If  some  candidate  polls  a  majority  of  all  the  votes  in  the  first 
column,  he  is  elected.  Failing  that,  the  first  and  second  choice 
votes  are  added  together.  The  candidate,  now  highest,  wins,  if  he 
has  a  majority.  If  no  man  can  command  a  majority  of  the  firsts 
and  seconds,  meaning  that  there  are  a  number  of  nearly  equally  de- 
sirable candidates,  the  choices  in  the  third  column  are  now  added  in. 
The  highest  man  then  wins  whether  he  has  a  majority  or  not  —  for 
he  is  the  man  on  the  list  behind  whom  the  greatest  number  of  voters 
are  found  to  have  gathered  after  each  has  specified  all  whom  he  cares 
to  support. 

This  will  always  result  in  a  majority  election,  unless  the  list  of 
candidates  happens  to  contain  no  one  on  whom  the  majority  can 
freely  and  automatically  unite.  .  .  . 

Under  our  present  system  the  voter  can  vote  for  but  one  man  what- 
ever the  number  of  good  or  bad  candidates,  and  the  chances  are  that 
the  undesirable  man  will  win,  because  the  machine  can  prevent  the 
scattering  of  its  vote  among  a  lot  of  nominees,  whereas,  if  the  citizens 


CHOOSING  THE  AGENTS  OF  GOVERNMENT  477 

had  a  real  opportunity  for  free  expression,  a  large  majority  might 
have  gotten  together  behind  some  independent  candidate. 

For  instance,  one  man  was  elected  mayor  of  a  Massachusetts  An  example, 
city  about  a  year  ago  by  1800  votes  out  of  7200;  the  5400  other 
votes  being  divided  nearly  equally  among  four  other  candidates. 
The  primary  partisan  system  to  prevent  such  mishaps  has  to  choke 
off,  in  the  interest  of  harmony,  desirable  candidates,  in  order  not 
to  risk  a  party  defeat  through  a  split  ticket.  .  .  . 

The  present  system   necessitates  the  expenditure  of   large  sums   How  pref- 

of  money  and  a  great  deal  of  time  and  energy  to  be  nominated  or   <^''<-""t"'' 
1         J      TT    1        1  <■  -1  voting  im- 

elected.     Under  the  preferential  system  no  money  or  time  need  be   proves  upon 

expended  in  campaigns.    A  man  can  be  elected  on  his  reputation  as  ^^^  present 

system. 
is  shown  by  the  fact  that  the  president  of  the  Chamber  of  Commerce 

was  elected  to  the  Spokane  city  council  during  his  absence  from  the 

city.  .  .  . 

208.   Adequate  representation  of  the  minority  ^ 

Related  to  the  question  of  making  sure  that  successful  candidates  The  ade- 
represent  a  majority  of  those  voting,  is  the  problem  of  the  adequate   "'"^^^  repre- 
representation  of  the  minority.     To  meet  this  last-named  difficulty  of  the 
political  reformers  have  put   forth  various  plans  for  proportional   "^'"onty. 
representation.     These  are  designed  to  give  minority  parties  rep- 
resentation in  proportion  to  their  voting  strength.    One  of  the  earliest 
and  best  known  forms  of  proportional  representation  is  that  applied 
in  Illinois  in  1870  in  the  effort  to  give  minority  parties  adequate 
representation  in  the  state  legislature.     The  following  passage  de- 
scribes the  plan  in  use  in  Illinois: 

[The  law  provides]  that  "in  all  elections  of  representatives  afore-   Framework 
said,  each  qualified  voter  may  cast  as  many  votes  for  one  candidate  ^[[j^^^^    j^^^^ 
as  there  are  representatives  to  be  elected,  or  may  distribute  the  of  propor- 
same,  or  equal  parts  thereof,  among  the  candidates,  as  he  shall  see   [^^^[^^i^ 
fit;    and  the  candidates  highest  in  votes  shall  be  declared  elected." 
Under  this  plan  it  is  of  course  true  that  any  party  having  more  than 
one-fourth  of  the  votes  in  a  senatorial  district  may  elect  one  of  the 

1  From   the   Illinois   Legislative   Reference   Bureau,    ConsUlutional  Convention 
Bulletins.     Springfield,  111.,  1920;  pp.  538-542- 


478 


READINGS  IN  AMERICAN  DEMOCRACY 


Importance 
of  each 
party 
gauging 
its  own 
strength. 


The  device 
secured 
proportional 
representa- 
tion for 
the  two 
principal 
parties 


as  well  as 
for  the 
Progressive 
Party  in 
1912, 


three  candidates  to  the  House  of  Representatives,  if  all  of  the  votes 
of  that  party  are  concentrated  upon  one  such  candidate.  A  party 
having  less  than  three-fourths  of  the  votes  in  a  senatorial  district 
cannot  elect  all  three  of  the  representatives  from  the  district  if  any 
other  party  having  at  least  one-fourth  of  the  votes  has  concentrated 
upon  a  single  candidate;  and  if  a  party  having  a  distinct  majority, 
but  less  than  three-fourths  of  the  votes  in  a  senatorial  district,  scatters 
its  votes  among  three  candidates,  a  minority  party  may  be  able  to 
elect  two  candidates  by  a  concentration  of  its  votes  upon  the  two. 

The  cumulative  system  therefore  makes  it  necessary  that  each 
party  gauge  its  strength  in  advance  of  the  election,  and  concentrate 
its  votes  in  the  election  upon  the  number  of  candidates  it  thinks 
possible  to  elect.  A  minority  party  able  actually  to  elect  but  one 
candidate  may  lose  that  one  if  it  places  two  or  three  candidates  in 
the  field.  The  majority  party  able  to  elect  two  may  lose  one  of  the 
two  if  it  places  three  in  the  field,  and  there  have  been  some  instances 
of  a  party  failing  to  obtain  under  the  cumulative  system  a  represen- 
tation in  proportion  to  its  strength,  because  of  its  placing  too  many 
candidates  in  the  field.  On  the  other  hand,  a  party  may  fail  of  ob- 
taining representation  of  its  strength  under  the  cumulative  system 
because  of  its  failure  to  have  as  many  candidates  as  it  could  actually 
elect.  That  is,  a  party  which  has  been  a  minority  party  in  a  district 
may  place  but  one  candidate  in  the  field  for  representative,  and  may 
as  the  result  of  the  particular  election  become  the  majority  party  with 
a  possibility  of  electing  two  members  of  the  house,  if  it  had  nominated 
two  candidates.  .  .  . 

With  respect  to  the  operation  of  the  cumulative  system,  it  may 
perhaps  be  said  that  the  system  has  in  the  main  obtained  a  rep- 
resentation for  the  two  principal  parties  in  the  state  in  very  close 
proportion  to  the  actual  votes  cast  by  these  parties,  and  also  that 
the  system  obtained  for  the  Progressive  party  in  191 2  a  strength  in 
the  House  of  Representatives  proportionate  to  the  vote  cast  by  that 
party. 

However,  the  cumulative  system  has  not  obtained  much  of  actual 
representation  for  weak  minority  parties,  or  for  minority  parties 
whose  strength  may  be  relatively  great,  but  whose  vote  may  be  scat- 
tered somewhat  evenly  throughout  all  of  the  senatorial  districts  in 


CHOOSING  THE  AGENTS  OF  GOVERNMENT  479 

the  state.  The  Progressive  party  in  191 2  cast  a  large  vote,  but  its 
strength  was  much  greater  in  some  senatorial  districts  than  in  others. 
The  Progressive  party  was,  therefore,  able  in  191 2  to  elect  a  number 
of  representatives  proportional  to  the  popular  vote  which  was  cast 
for  representatives.  In  1914,  however,  the  actual  vote  cast  for  rep- 
resentatives by  the  Progressive  party  was  much  less  than  in  191 2, 
and  with  this  lesser  vote  the  Progressive  party  obtained  a  strength 
in  the  House  of  Representatives  disproportionately  low  as  compared 
with  the  popular  vote.  .  .  . 

The  same  situation  has  presented  itself  with  respect  to  other  but  small 

minority  parties,  which  have  not  obtained  such  a  strength  as  to  be-   '"'"o"'>' 

parties  have 
come  substantially  the  chief  minority  party  in  particular  districts,    continued 

The  cumulative  system  in  its  operation  has  been  in  no  way  a  scheme  !°  ^^f^cr 

from  lack 
of  proportional  representation  except  as  between  the  two  principal   of  represen- 

parties.  .  .  .  Perhaps  the  main  purpose  in  the  adoption  of  cumu-   ^^'^'o"- 

lative  voting  in  1870  was  to  do  away  with  the  distinctly  sectional 

representation  in  the  Illinois  General  Assembly,  and  this  purpose  has 

been   accomplished.   .  .  .  However,  small   parties   have   as  a   rule 

suffered  from  lack  of  representation  and  the  cumulative  system  has 

been  of  little  or  no  aid  to  them. 


209.   Evils  of  the  long  ballot  ^ 

The  wave  of  democracy  which  swept  over  the  country  in  the  last  Increasing 
century  had  the  effect  of  increasing  the  number  of  elective  offices    ?"^i^  " 
in  American  government.     A  greatly  lengthened  ballot,   together  and  tht 
with  the  great  frequency  of  elections,  has  made  it  impossible  for  the 
average  voter  to  exercise    proper  judgment  at   the  polls.      P'airly 
representative  of  conditions  throughout  the  United  States  is  the 
case  of  Ohio,  in  v/hich  the  long  ballot  was  formerly  a  great  evil.    In   The  case 
191 1  a  Short  Ballot  Committee  reported  upon  conditions  in  Ohio 
as  follows: 


L-SUlt. 


of  Ohio: 


This  unsatisfactory  and  undemocratic  development  of  our  election  ,\t  first 
appUances  has  been  one  of  gradual  growth.     The  first  constitution 


were 


of  Ohio,  adopted  in  1802,  incorporated  the  principle  of  comparatively  elective, 

1  From  the  Municipal  Association  of  Cleveland  for  the  Short  Ballot  Movement 
in  Ohio,  Report.     Cleveland,  Ohio,  1911;  pp.  6-10. 


48o 


READINGS  IN  AMERICAN  DEMOCRACY 


but  grad- 
ually the 
ballot  was 
lengthened. 


Some 

examples  of 
the  long 
ballot. 


The  burden 
on  the  voter 
increased  by 
initiative  and 
referendum 
legislation. 


few  elective  officers.  The  only  elective  officials  were  the  Governor, 
members  of  the  General  Assembly,  one  sheriff  and  one  coroner  in 
each  county,  and  such  town  and  township  officers  as  should  be  pro- 
vided by  law.  The  secretary,  treasurer,  and  auditor  of  state,  and 
judges  of  the  courts,  were  appointed  by  joint  ballot  of  the  Senate 
and  House  of  Representatives.  All  other  civil  offices,  created  by 
law,  were  made  appointive. 

Experience  quickly  proved  that  this  arrangement  of  providing 
for  the  appointment  of  officers  by  the  General  Assembly  was  unwise, 
for  it  resulted  inevitably  in  log-roUing  and  in  purely  partisan  political 
appointments.  As  a  result  .  .  .  the  new  constitution,  adopted  in 
185 1,  provided  for  the  election  of  the  members  of  the  legislature, 
Governor,  lieutenant  governor,  secretary  of  state,  auditor  of  state, 
treasurer  of  state,  attorney  general,  members  of  board  of  public 
works,  judges  of  supreme,  common  pleas  and  probate  courts,  clerks 
of  courts,  justices  of  peace,  and  all  county  and  township  officers. 
The  General  Assembly  was  forbidden  to  exercise  any  appointing 
power,  except  as  specifically  provided  for  in  the  constitution.  .  .  . 

The  baUot  of  the  state  and  county  election  of  1908  contained  the 
names  of  391  candidates  for  forty-five  separate  offices,  not  including 
the  twenty-three  presidential  electors.  The  ballot  of  the  1910  election 
contained  the  names  of  210  candidates  for  forty-two  positions. 
The  ballot  in  the  Cleveland  municipal  election  of  1909  contained 
the  names  of  285  candidates.  In  the  191 1  primary  election  in  Cleve- 
land 324  names  appeared  on  the  tickets  of  the  two  dominant  parties. 
And  at  the  November  election  of  191 1,  four  tickets  were  submitted 
to  the  voter  in  each  precinct  in  Cleveland  containing  the  names  of 
132  candidates  for  forty  distinct  offices.  .  .  . 

[Recent  initiative  and  referendum  legislation  promises  to  increase 
the  burden  on  the  voter.]  On  November  7,  the  voters  of  Cleve- 
land, for  example,  were  asked  not  only  to  make  their  choice  of  forty 
officials  from  a  list  of  132  candidates  representing  the  four  political 
parties,  but  also  to  express  an  opinion  upon  the  advisabiUty  of  the 
city  issuing  $2,000,000  in  bonds  for  building  a  municipal  lighting 
plant;  an  opinion  on  the  question  of  whether  the  twelve  amendments 
recently  made  to  the  Tayler  Street  Railway  grant  by  the  city  council 
are  for  the  protection  of  the  pubUc  interest;    and  also  an  opinioi; 


CHOOSING  THE  AGENTS  OF   GOVERNMENT  481 

on  the  advisability  of  creating  a  park  commission  as  a  substitute 
for  the  present  plan  of  park  control.  When  the  voter  entered  the 
booth  on  November  7,  he  received  seven  separate  and  distinct 
ballots.  .  .  . 

The  voters  of  "Cincinnati  were  confronted  with  an  even  more  for-  The  burden 
midable  task.     They  were  given  nine  separate  and  distinct  ballots:   ""^  '^. 

1.  The  municipal  ticket,  containing  names  of  candidates  for  city  Cincinnati. 
offices. 

2.  Board  of  Education  —  non-partisan  ballot.  ♦ 

3.  Delegates  to  Constitutional  Convention. 

4.  Judicial  ballot  in  three  parts. 

5.  Ballot  providing  for  annexation  of  eight  suburbs. 

6.  Bond  issue  in  two  parts  —  hospital  purposes. 

7.  Bond  issue  for  new  jail  and  courthouse. 

8.  For  increased  tax  levy  under  the  Smith  law. 

9.  To  provide  for  Agricultural  Experimental  Farm  in  Hamilton 
County. 

To  say  that  the  voters  in  these  two  cities  were  called  upon  to   Under  such 

...       ,      ,  1   •   1       •  circum- 

perform  a  difficult  task  is  far  withm  the  facts  —  plamly,  it  was  an   s^J^n(-es 

impossible  task.     It  is  absurd  to  expect  the  average  voter,  whose   intelligent 

first  duty  is  to  earn  a  living  for  himself  and  family,  to  give  the  time   J^possible. 

necessary  to  enable  him  to  vote  intelligently  and  with  discrimination 

on  so  many  candidates  and  at  the  same  time  on  such  complicated 

questions.  .  .  .  The  best  informed  voter  was  probably  able  to  vote 

intelligently,  as  we  have  pointed  out,  upon  not  more  than  one-tenth 

of  the  candidates  on  the  various  ballots  and  he  was  therefore  obliged 

to  vote  ignorantly  on  the  other  nine-tenths.  .  .  . 

210.   The  principle  of  the  short  ballot^ 

The  shortening  of  the  ballot  is  advocated  as  a  remedy  for  the  The  pro- 
evils  of  the  long  ballot.    The  essential  features  of  the  short  ballot  ^^^^^ 
plan  are  first  to  elect  only  those  officers  who  have  to  do  with  important  for  the 
pubhc  pohcies  and  who  attract  and  deserve  to  attract  public  attention,  j^^Jjf^^ 
and  second  to  make  the  number  of  these  officers  small  enough  that 

1  From  the  National  Short  Ballot  Association,  The  Doctrine  of  the  Short  Bollot. 
New  York,  1910. 


482 


READINGS  IN  AMERICAN   DEMOCRACY 


An  example 
of  a 

shortened 
ballot. 


the  voters  may  be  able  intelligently  to  study  their  qualifications. 
All  other  officials  would  be  appointed,  either  directly  by  executive 
officers,  or  through  the  merit  system.  The  principle  of  the  short 
ballot  is  explained  in  the  following  extract  from  a  pamphlet  issued 
by  the  National  Short  Ballot  Association: 

Any  conspicuous  office  is  beyond  the  control  of  corruptive  forces. 
The  conspicuous  office  stands  on  a  pinnacle  of  light,  utterly  beyond 
the  reach  of  the  low  politician.  Good  government  is  in  fact  so  much 
a  matter  of  concentration  of  public  attention,  that  publicity  will 
make  even  corrupt  officials  behave  themselves  and  move  with  great 
circumspection.  .  .  .  Mis-government  lurks  only  in  the  shadows, 
in  the  places  where  the  spot-light  never  touches.  It  cannot  survive 
when  a  commission  begins  to  investigate  or  when  some  especially 
important  matter  attracts  to  it  the  attention  of  the  public. 

We  cannot  hope  to  raise  the  level  of  the  political  intelligence  of 
the  entire  citizenship  to  a  point  where  it  can  handle  the  long  ballot 
wisely.  "The  mountain  will  not  come  to  Mohammed,  Mohammed 
must  go  to  the  mountain. "  We  must  shorten  the  ballot  to  a  point 
where  the  average  man  will  vote  intelligently  without  giving  to  poli- 
tics more  attention  than  he  does  at  present.  We  must  so  reduce  the 
total  number  of  candidates  that  the  newspapers  will  be  able  to 
give  adequate  attention  to  each.  Voting  a  straight  ticket  is  not  a 
matter  of  party  loyalty  so  much  as  of  not  knowing  what  else  to  do, 
and  split  tickets  will  become  common  as  soon  as  the  list  is  reduced 
to  a  point  where  each  candidate  becomes  in  the  mind  of  the  voter 
a  definite  personality  instead  of  a  mere  name  on  a  long  Ust. 

To  make  public  office  conspicuous  can  only  be  accomplished  by 
making  it  stand  out  in  solitude  before  the  gaze  of  the  voter.  Let 
all  the  encumbrances  in  the  shape  of  minor  offices  disappear  from  the 
ballot  and  be  made  appointive.  Or  at  the  very  least  prevent  the  few 
offices  from  overshadowing  the  many.  .  .  . 

To  be  pictorial,  let  us  see  how  a  revised  schedule  of  elections  might 
look  if  we  put  into  the  realm  of  appointive  offices  as  many  as  pos- 
sible of  those  which  public  opinion  now  ignores.  All  county  offices, 
many  city  positions  and  the  entire  tail  of  the  state  ticket  would  be 
disposed  of  and  the  ballots  would  look  something  Uke  this: 


CHOOSING  THE  AGENTS  OF  GOVERNMENT  483 


First    Year 

Second    Year 

Third    Year 

Fourth    Year 

President   and 

Governor 

Congressman 

State  Senator 

Vice  President 

four  years 

two  years 

four  years 

four  years 

Congressman 

State 

Mayor 

State 

two  years 

Assemblyman 

four  years 

Assemblyman 

two  years 

two  years 

City  Councilman 

City 

two  years 

Councilman 
two  years 

This  schedule  .  .  .  provides  for  every  office  which  is  properly  Merits  of 
within  the  realm  of  politics.  It  provides  ballots  which  any  man  can  this  plan, 
and  would  vote  intelligently.  The  tendency  is  always  to  vote  for 
men,  not  for  parties;  most  men,  even  now,  say,  "I  shall  vote  for 
Mr.  —  ,"  rather  than  "I  shall  vote  the  Republican  ticket."  The 
personality  of  the  conspicuous  nominee  appeals  to  the  voter  far 
more  than  his  party  label  and  the  candidate  w'hose  personality  is 
really  famihar  to  the  voters  is  almost  independent  of  either  the  help 
or  the  opposition  of  his  party  machine. 

So  in  the  "second  year,"  for  instance,  men  will  tell  each  other 
"I  shall  vote  for  Jackson  and  WUliams, "  these  being  candidates  for 
Governor  and  Assemblyman  respectively,  and  if  the  wisdom  of  the 
latter  choice  is  challenged  there  will  be  facts  and  reasons  forthcoming. 
The  average  voter  could  carry  the  whole  political  situation  in  his 
head  —  political  specialists  would  be  superfluous.  Instead  of  blindly 
ratifying  a  boss'  selection  for  assembl^inan,  the  voter  will  know  all 
about  the  nominee.  .  .  .  Aspirants  to  office  wiU  have  to  appeal  to 
the  voters  direct  and  when  elected  will  be  responsive  directly  to  those 
voters  without  the  intermediate  party  organization  which  now  acts 
as  a  kind  of  "shock  absorber.".  .  . 

We  must  get  on  a  basis  where  the  good  intentions  of  the  average  The  goal, 
voter  find  intelligent  expression  on  the  entire  ticket  so  as  to  produce 
good  government  year  after  year  without  a  great  fight.  .  .  .  PubUc 
opinion  must  always  work  in  broad  masses,  clumsily  but  with  tremen- 
dous force.     To  make  a  multitude  of  Httle  decisions  is  beyond  its 


484  READINGS  IN  AMERICAN  DEMOCRACY 

coarse  powers.  It  can't  play  the  tune  it  has  in  mind  upon  our  com- 
pHcated  political  instrument;  but  give  it  a  keyboard  simple  enough 
for  its  huge,  slow  hands,  and  it  will  thump  out  the  right  notes  with 
precision. 

Questions  on  the  foregoing  Readings 

1.  Name  several  methods  of  choosing  party  candidates  which  have 

predominated  at  different  periods  in  our  history. 

2.  Why  should  the  primary  elections  of  all  parties  be  held  together 

in  every  election  precinct  on  the  same  day? 

3.  How  would  the   "  registration   of   party  affiUation  "   protect   the 

party  at  the  direct  primary? 

4.  Name  some  minor  features  of  a  good  primary  election  law. 

5.  When  did  the  non-partisan  ballot  come  into  use? 

6.  What  is  the  nature  of  this  ballot? 

7.  What  is  its  purpose? 

8.  With  reference   to  Iowa,  how  many  signatures   must   be  secured 

before  a  citizen  may  become  a  candidate  for  mayor  or  com- 
missioner? 

9.  What  is  the  nature  of  the  "  improvement  league  "? 

10.   How   are   the  claims   of   candidates   for   municipal   office   in   Des 

Moines,  Iowa,  presented  to  the  voters? 
u.    What  is  the  influence  of  personality  in  such  contests? 

12.  What  can  be  said  as  to  the  eHmination  of  sectional  or  ward  influ- 

ence in  municipal  elections  in  Des  Moines? 

13.  Why  has  the  preferential  voting  device  been  put  forward? 

14.  Give   the   main  provisions   of   the   plan   proposed  in   Cambridge, 

Massachusetts. 

15.  What  is  meant  by  saying  that  preferential  voting  makes  possible 

either  a  majority  choice,  or  a  legitimate  plurality  choice? 

16.  How  is  the  successful  candidate  ascertained  under  this  preferential 

voting  plan? 

17.  Why  has  the  plan  for  proportional  representation  been  put  forward? 

18.  Discuss  the  framework  of  the  Illinois  plan  for  proportional  repre- 

sentation. 

19.  Why  is  it  important  for  each  party  to  gauge  its  own  strength  under 

this  plan? 

20.  To  what  extent  has  the  Illinois  plan  allowed  proportional  repre- 

sentation to  the  two  principal  parties?     to  minor  parties? 

21.  Trace  the  development  of  the  long  ballot  in  Ohio. 

22.  Give  some  examples  of  excessive  burdens  borne  by  the  voters  of 

Ohio  cities. 


CHOOSING  THE  AGENTS   OF   GOVERNMENT  485 

23.  How    has    initiative    and    referendum    legislation    increased    this 

burden? 

24.  What  plan  has  been  advocated  as  a  remedy  for  the  evils  of  the 

long  ballot? 

25.  Point  out  the  chief   advantages  which  are  claimed  for  this  plan. 

26.  What  is  the  goal  of  election  reformers? 


CHAPTER  XXXVI 


Some 

factors 

influencing 

legislation 

in  the 

United 

States. 


Defects  of 
American 
legislation : 
(i)  lack  of 
responsi- 
bility. 


HONESTY  AND   EFFICIENCY   IN    OFFICE 
211.    Obstacles  to  intelligent  legislation  ^ 

In  both  state  and  national  legislatures  lawmaking  is  notori- 
ously inefficient  and  defective.  American  legislators  are  not  always 
public-spirited  or  competent,  but  even  where  our  lawmakers  are 
conscientious  and  capable,  it  has  been  shown  again  and  again  that 
the  laws  which  they  turn  out  are  often  defective  and  ill-considered. 
We  must  admit,  therefore,  that  regardless  of  the  personnel  of  our 
legislatures  there  are  in  this  country  serious  obstacles  to  intelligent 
legislation.  These  obstacles  are  discussed  by  Professor  Freund  in 
the  following  passage: 

The  shortcomings  of  our  present  system  may  be  said  to  be  lack 
of  responsibility,  lack  of  expert  advice,  and  lack  of  principle . 

I.  Responsibility.  .  .  .  Any  member  of  the  legislature  may  in- 
troduce any  bill  he  pleases,  and  his  doing  so  does  not  even  necessarily 
mean  that  he  assumes  any  responsibility  for  its  form  or  contents. 
...  It  has  been  suggested  that  it  might  be  well  to  limit  each  mem- 
ber of  a  state  legislature  to  a  small  number  of  bills,  to  induce  him 
to  exercise  some  care  and  discrimination.  If  this  were  regarded  as 
[unreasonable],  he  might  at  least  be  required,  as  a  condition  of  having 
his  bill  considered  by  a  committee,  to  state  at  whose  request,  at  the 
instance  of  which  interest  or  organization,  he  introduced  a  measure; 
still  better  to  furnish  a  memorandum  of  the  purpose  of  the  bill  and 
an  explanation  of  its  provisions,  as  is  now  common  in  the  national 
legislature  when  a  bill  is  reported  favorably  by  a  committee.  This 
would  ensure  the  correction  of  many  errors  and  would  tend  to  fix 
responsibility.  ...  All  this  could  be  accomplished  by  rules  of  the 

'  From  the  American  Political  Science  Association,  Proceedings  at  its  Fourth 
Annual  Meeting,  igo?.  Waverly  Press,  Baltimore,  Md.,  1908.  Ernest  Freund, 
"The  Problem  of  Intelligent  Legislation";  pp.  71-74,  77. 

486 


HONESTY  AND  EFFICIENCY  IN  OFFICE  487 

legislature.    The  publication  of  bills  in  advance  of  their  introduction 

would  be  even  more  desirable.  .  .  . 

While  the  executive  cannot  initiate  legislation  directly,  he  can   The  part 

do  so  practically  through  friendly  members,  and  assume  the  political   "^  ^1"-"  "' 

^  cculive  in 

responsibility  therefor.    The  practice  is  not  uncommon  now,  and  will   sccurinR 

probably  grow  in  the  future.  .  .  .  The  share  of  our  executives  in  ^^'^^^"  ''**^- 
legislation  at  the  final  stage  of  the  process  is  much  larger  than  it  is 
in  most  European  states,  but  at  present  the  sense  of  responsibility 
for  its  exercise  is  limited.  While  governors  regard  it  as  their  duty 
to  veto  measures  that  are  plainly  unconstitutional  or  unworkable, 
they  generally  yield  to  the  legislature  in  matters  of  policy.  A  freer 
exercise  of  the  veto  power  than  is  now  common,  based  upon  loose- 
ness and  faultiness  of  provisions,  would,  however,  be  tolerated  not 
only  by  the  people,  but  probably  by  the  legislature  itself.  .  .  . 

2.   Expert  Advice.  —  There  are  two  distinct  kinds  of  advice  that    (2)  Lack  of 
the  legislature  stands  in  need  of,  the  first  as  to  the  content  of  legis-   ^^^^ 
lation,  the  second  as  to  its  legal  form. 

As  to  the  first,  the  theory  is  that  the  legislature  is  acquainted 
with  the  circumstances  and  needs  of  the  people,  .  .  .  but  as  a  matter 
of  fact,  most  of  the  information  necessary  for  intelligent  legislation 
cannot  be  acquired  without  special  study  or  even  special  training.  .  .  . 
Where  the  subject  to  be  legislated  on  is  one  not  supposed  to  be  techni- 
cal, the  legislature  commonly  acts  upon  the  vaguest  impressions, 
reflecting  popular  beliefs  and  prejudices.   .  .   . 

As  regards  the  correct  legal  form  of  expressing  the  subject-matter 
of  legislative  proposals,  it  is  recognized  that  this  is  a  task  requiring 
technical  learning.  .  .  .  The  technical  shortcomings  of  our  statutes 
are  chiefly  due  to  the  fact  that  they  come  from,  so  many  hands  working 
without  supervision  and  without  a  concerted  plan.  Each  statute 
is  apt  to  create  to  some  extent  an  administrative  machinery  of  its 
own,  to  have  its  own  pecuHar  provisions  for  sanction  and  enforce- 
ment, to  frame  anew  rules  and  principles  applicable  to  already  exist- 
ing acts  in  pari  materia.  The  multiplicity  of  separate  provisions  for 
separate  statutes  produces  dis-harmony  and  confusion,  and  unneces- 
sarily encumbers  our  law.  .  .  . 

3.  iLack  of  principle'].  —  By  principle  I  understand  the  permanent 
and  non-partisan  poHcy  of  justice  in  legislation,  the  observance  of 


488 


READINGS  IN  AMERICAN  DEMOCRACY 


is)  lack  of 
principle. 


the  limits  of  the  attainable,  the  due  proportion  of  means  to  ends, 
and  moderation  in  the  exercise  of  powers  which  by  long  experience 
has  been  shown  to  be  wise  and  prudent,  though  it  may  be  tempo- 
rarily inconvenient  or  disappointing  in  the  production  of  immediate 
results.  .  .  . 


The  move- 
ment to 
employ 
expert  bill- 
drafters, 
and  to 
establish 
legislative 
reference 
bureaus. 


The  best 
way  to 
improve 
legislation 


is  to 
help  the 
legislator. 


212.   The  legislative  reference  bureau^ 

The  activities  of  political  reformers  have  not  markedly  reduced 
the  evils  of  unintelligent  legislation;  nevertheless  there  are  here 
and  there  indications  of  a  new  attitude  toward  the  problems  of  the 
lawmaker.  There  is  a  growing  tendency  for  state  legislatures  to 
employ  an  expert  bill-drafter  to  draw  up  laws  on  technical  matters. 
Often  this  biU-drafter  works  in  conjunction  with  a  legislative  reference 
bureau,  provision  for  which  now  exists  in  a  number  of  states.  The 
first  of  these  bureaus  was  the  Wisconsin  Legislative  Reference  Depart- 
ment, established  in  igoi.  The  following  is  an  extract  from  a  pubUcity 
bulletin  of  the  Department,  issued  in  1908: 

Our  short  experience  has  taught  us  many  things.  We  have  been 
convinced  that  there  is  a  great  opportunity  to  better  legislation 
through  work  of  this  kind,  —  that  the  best  way  to  better  legislation 
is  to  help  directly  the  man  who  makes  laws.  We  bring  home  to  him 
and  near  to  him  everything  which  will  help  him  to  grasp  and  under- 
stand the  great  economic  problems  of  the  day  in  their  fullest  sig- 
nifiance,  and  the  legislative  remedies  which  can  be  applied  and  the 
legislative  Hmitations  which  exist. 

We  mast  take  the  theory  of  the  professors  and  simplify  it  so  that 
the  layman  can  grasp  it  immediately  and  with  the  greatest  ease.  The 
legislator  has  no  time  to  read.  His  work  is  new  to  him,  he  is  beset 
with  routine  work,  he  has  to  have  conferences  with  his  friends  upon 
political  matters,  he  is  beset  by  office  seekers  and  lobbyists,  and  he 
has  no  time  to  study.  If  he  does  not  study  or  get  his  studying  done 
for  him,  he  will  fall  an  easy  prey  to  those  who  are  looking  out  to  better 
their  own  selfish  ends.  Therefore  we  must  shorten  and  digest  and 
make  clear  all  information  that  we  put  within  his  reach.  .  .  . 

Some  essentials  in  carrying  on  this  work  may  be  summarized 
briefly: 

'  From  the  Wisconsin  Legislative  Reference  Department,  Publicity  Bulletin,  1908. 


HONESTY  AND   EFFICIENCY  IN  OFFICE  489 

i.   The  first  essential  is  a  selected  library  convenient  to  the  legis-   Importance 
lative  halls.    This  library  should  consist  of  well- chosen  and  selected  "'  ^ 
material.     A  large  library  is  apt  to  fail  because  of  its  too  general   hclp^RThe 
nature  and  because  it  is  Uable  to  become  cumbersome.    This  library  l^*'™'iker. 
should  be  a  depository  for  documents  of  all  descriptions  relating 
to  any  phase  of  legislation  from  all  states,  Federal  government,   and 
particularly  from  foreign  countries.  .  .  .  Books  are  generally  behind 
the  times,  and  newspaper  clippings  from  all  over  the  country,  and 
magazine  articles,  court  briefs,  and  letters  must  supplement  this 
library  and  compose  to  a  large  extent  its  material. 

2.  A  trained  librarian  and  indexer  is  absolutely  essential.    The  The 
material  is  largely  scrappy  and  hard  to  classify.    We  need  a  person  librarian, 
with  a  liberal  education,  who  is  original,  not  stiff,  who  can  meet  an 
emergency,  and  who  is  tactful  as  well. 

3.  The  material  is  arranged  so  that  it  is  compact   and  acces-  Arrangement 
sible.  ...  °^  '""^"''''• 

4.  Complete  index  of  all  bills  which  have  not  become  laws  in  the 
past  should  be  kept.  This  saves  the  drawing  of  new  bills  and  makes 
the  experience  of  the  past  cumulative. 

5.  Records  of  vetoes,  special  messages,  pohtical  platforms,  pohti-  Political 
cal  literature,  and  other  handy  matter  should  be  carefully  noted  a||j"^.cords 
and  arranged.  ... 

6.  Digests  on  laws  on  every  subject  before  the  legislature  should   Digests  of 
be  made  and  many  copies  kept.    Leading  cases  on  all  these  laws  and    |j^J^^p*j|)° 
opinions  of  public  men  and  experts  upon  the  working  of  these  laws 

or  upon  the  defects,  technical  or  otherwise,  should  be  carefully 
indexed,  and,  as  far  as  possible,  published  in  pamphlet  form,  with 
short  bibliographies  of  the  subjects  most  before  the  people. 

7.  The  department  must  be  entirely  nonpolitical  and  nonpartisan   Importance 
or  else  it  will  be  worse  than  useless.    If  you  have  the  choice  between  "/^^'JJ'^'J^''" 
estabUshing  a  political  department   and  no  department  at  all,  take 

the  latter. 

8.  The  head  of  the  department  should  be  trained  in  economics,  The  head 
pohtical  science,  and  social  science  in  general,  and  should  have  also  j^.p^rtment. 
a  good   knowledge  of   constitutional  law.     He  should,  above  all. 

have  tact  and  knowledge  of  human  nature. 

9.  There  should  be  a  trained  draftsman  connected  with  the  depart- 


A  trained 
draftsman 
essential. 


490  READINGS  IN  AMERICAN  DEMOCRACY 

ment,  —  a  man  who  is  a  good  lawyer  and  something  more  than  a 
lawyer,  a  man  who  has  studied  legislative  forms,  who  can  draw  a  bill, 
revise  a  statute,  and  amend  a  biU  when  called  upon  to  do  so.  Such 
a  man  working  with  this  department  and  the  critical  data  which 
it  contains  will  be  absolutely  essential,  ^ 


Rapid 

development 
of  state  ad- 
ministrative 
departments 
and  the  result. 


The  defects 
of  state 
administra- 
tion, 
briefly 
summarized: 

Lack  of 
correlation, 


213.   Defects  of  the  state  administration  ^ 

The  history  of  state  administrative  departments  in  the  last  half 
century  is  the  story  of  rapid  and  divergent  growth,  largely  without 
superintendence  or  direction.  As  a  result,  the  administrative  depart- 
ment is  in  most  states  a  confused  and  tangled  mass  of  boards 
and  commissions,  bureaus  and  single  offices,  often  duplicating  the 
work  of  one  another,  and  largely  working  without  any  appreciable 
degree  of  coordination.  The  evils  of  this  situation  may  be  illustrated 
by  the  following  extract  from  the  1915  Report  of  the  Illinois  Effi- 
ciency and  Economy  Committee: 

As  a  result  of  its  investigations,  the  Committee  finds  that  a 
condition  of  disorganization  and  confusion  exists  in  the  executive 
departments  of  the  state  government  which  necessarily  produces 
inefficiency  and  waste  in  the  state  services.  .  .  . 

The  main  points  in  the  indictment  may  be  briefly  summarized: 

.  .  .  Under  the  existing  arrangements  inefficiency  and  waste  neces- 
sarily arise  from  the  lack  of  correlation  and  cooperation  in  the  work 
of  different  offices  and  institutions  which  are  carr>'ing  out  similar 
or  closely  related  functions.  There  are  separate  boards  for  each  of 
the  state  penitentiaries  and  reformatory  and  for  each  of  the  state 
normal  schools.  There  are  half  a  dozen  boards  dealing  with  agricul- 
tural interests;  and  about  a  score  of  separate  labor  agencies.  ,  .  . 
State  finance  administration  is  distributed  between  a  number  of 
elective  and  appointive  officials  and  boards  without  concentrated 
responsibility.  The  supervision  of  corporations  and  of  banks,  insur- 
ance companies  and  public  utilities  is  exercised  by  a  series  of  dis- 
tinct departments.  .  .  .  Nor  is  there  any  official  authority  for  har- 
monizing the  work  of  the  numerous  educational  agencies.  .  .  . 

'  From  the  Illinois  EfiBciency  and  Economy  Committee,  Report.  Chicago,  1915; 
pp.  18-24. 


HONESTY  AND   EFFICIENCY   IN  OFFICE  491 

Even  where  there  is  no  direct  dupHcation  of  work,  the  present 
laws  frequently  give  powers  to  several  departments  under  which 
each  employs  agents  for  purposes  which  could  be  more  efficiently 
and  economically  performed  by  one  agent  at  the  same  time.  Thus 
the  inspectors  of  the  state  board  of  health,  the  state  food  commis- 
sioner and  the  chief  factory  inspector  may  each  visit  the  same  place 
for  different  purposes,  and  perhaps  give  conflicting  orders;  while 
a  single  thorough  inspection  for  all  of  these  offices  would  be  more 
effective  and  less  expensive.  .  .  , 

As  a  result  of  the  absence  of  any  systematic  organization  of  related  ineffective 
services,  there  is  no  effective  supervision  and  control  over  the  various  supcmsion, 
state  boards  and  commissions.  It  is  true  that  the  greater  number 
of  these  are  under  the  nominal  supervision  of  the  Governor,  through 
his  power  of  appointment  and  removal.  But  the  very  number  of 
separate  offices  makes  impossible  the  exercise  of  any  adequate 
control.  To  a  very  large  extent  each  authority  is  left  to  determine 
its  own  action;  conflict  of  authority  between  two  or  more  offices 
is  often  possible;  and  if  harmony  and  cooperation  are  secured  it  is 
by  voluntary  compromise  rather  than  by  the  advice  or  decision 
of  a  superior  authority.  Under  the  present  arrangements  too  many 
independent  authorities  have  power  to  make  expenditures  subject 
to  no  effective  centralized  control  or  responsibility.  This  situation 
necessarily  leads  to  waste  and  extravagance.  .  .  . 

One  of  the  most  serious  defects  arising  from  the  lack  of  correla-   lack  of 

tion  and  effective  supervision  over  the  subordinate  authorities  is  *    "  ^^^ 

^  system, 

the  absence  of  any  satisfactory^  budget  of  estimates  as  a  basis  of 
appropriations.    [This  is  a  serious  evil  which  must  be  attacked.].  .  . 

With  the  existing  lack  of  efficient  executive  organization  both  inadequate 
the  Governor  and  the  General  Assembly  fail  to  receive  proper  in  for-  j'' ^^j'^^j^JJ 
mation  and  advice  as  to  needed  legislation.  .  .  .  Conflicting  measures 
are  often  proposed  by  different  state  authorities;  and  many  pro- 
posals are  presented  from  outside  sources  both  on  subjects  within 
and  without  the  jurisdiction  of  existing  executive  officials.  As  a 
result  there  is  no  harmonious  legislative  policy  even  formulated; 
and  the  measures  enacted  not  only  lack  coherence,  but  at  times 
acts  are  passed  at  the  same  session  which  contain  directly  contra- 
dictory provisions.  .  .  . 


and  irre- 
sponsible 
government. 


492 


READINGS  IN  AMERICAN  DEMOCRACY 


Finally  under  the  present  arrangements  [the  public]  is  unable 
to  locate  definite  responsibility  for  negligence  or  misconduct  in  pub- 
lic business.  Public  opinion  usually  considers  the  Governor  respon- 
sible for  the  conduct  of  the  state  government;  but  with  the  lack  of 
effective  executive  control  over  the  subordinate  officials  this  opinion 
is  not  fully  justified.  At  the  same  time,  the  popular  conception  of 
the  Governor's  responsibility,  in  the  opinion  of  this  Committee, 
is  based  on  a  sound  and  just  principle;  and  the  machinery  of  state 
administration  should  be  so  organized  as  to  enable  this  conception 
to  be  adequately  realized. 


Reorgani- 
zation of 
the  Illinois 
state  ad- 
ministration 
recom- 
mended. 


Results  to 
be  expected: 

Greater 
economy 


and 
efficiency. 


214.   Results  of  a  reorganized  state  administration  ^ 

The  Illinois  Efficiency  and  Economy  Committee  offered  such  con- 
clusive proof  of  the  need  of  a  reorganization  of  the  state  adminis- 
tration that  the  pubUc  could  not  fail  to  be  convinced  of  the  neces- 
sity of  a  change.  In  191 7,  accordingly,  the  administrative  offices 
in  that  state  were  reorganized,  more  than  a  hundred  offices  being 
consolidated,  by  combination  and  elimination,  into  nine  departments. 
The  results  to  be  expected  from  such  a  reorganization,  the  committee 
had  outlined  in  1915  as  follows: 

The  proposed  organization  of  related  services  into  the  same  depart- 
ment will  bring  about  greater  economy  and  efficiency  by  eliminat- 
ing unnecessary  and  duplicate  positions,  and  still  more  by  bringing 
about  greater  harmony  and  cooperation  in  the  work  of  such  offices. 
It  should  also  be  easier  to  avoid  overlapping  of  functions  and  to  pro- 
mote cooperation  between  the  several  main  departments.  .  .  .  Under 
the  proposed  organization  there  should  also  be  little  or  no  occasion 
for  the  creation  of  additional  departments  in  the  future,  as  new 
services  when  needed  can  be  attached  to  some  of  the  departments 
already  established. 

Efficiency  and  economy  should  also  be  secured  under  the  proposed 
plan  of  reorganization  by  establishing  a  more  definite  system  of 
supervision  over  the  several  branches  of  state  administration.  The 
head  of  each   department  will  determine   many  matters   hitherto 

'  From  the  Illinois  Efficiency  and  Economy  Committee,  Report.  Chicago,  1915; 
pp.  74-76. 


HONESTY  AND  EFFICIENCY  IN  OFFICE  493 

brought  to  the  attention  of  the  Governor  or  decided  by  minor  oflkials 
without  relation  to  other  related  offices;  while  the  more  important 
questions  will  be  presented  to  the  Governor  with  adequate  infor- 
mation and  in  proper  form  for  prompt  action.  By  this  means  the 
Governor  will  be  enabled  to  give  more  attention  and  consideration 
to  the  larger  problems  both  of  administration  and  legislation. 

With  regard  to  the  constitutional  elective  ofhcers,  these  cannot    Shifts  ih 

be  brought  under  the  complete  control  of  the  Governor  without   ■'"P*'"^'- 

,  -1  •       •  XT     ,         ,  bility. 

changes  m  the  state  constitution.  Under  the  proposed  plans,  how- 
ever, these  officials  will  be  given  authority  and  can  be  held  respon- 
sible for  all  matters  properly  belonging  to  their  offices;  while  func- 
tions now  placed  on  these  officers  which  are  not  closely  related  to  their 
primary  duties  will  be  transferred  to  offices  under  the  supervision 
and  control  of  the  Governor. 

With  a  well -organized  executive  system,  recommendations  from    Increased 

the  several  departments  should  also  be  of  much  assistance  to  the   f'^^l^f^"^'^'^  '" 

legislation. 
General  Assembly  in  matters  of  legislation.     Such  recommendations 

should  cover  a  large  part  of  the  important  legislation  needed;  and 
coming  from  officers  responsible  for  its  execution  will  be  more  care- 
fully prepared,  both  as  to  substance  and  form  and  with  reference 
to  previous  legislation,  than  proposals  from  other  sources.  By  this 
means  there  should  be  brought  about  greater  harmony  between 
the  executive  and  legislative  branches  of  the  state  government. 

Moreover,  under  the  proposed  reorganization  the  general  public    Government 

will  be  able  to  learn  more  readily  from  the  reports  of  the  important   ^^'  ,  '"^ 

J  t^  ^  made  more 

departments  of  the  actual  conduct  of  public  affairs  in  any  of  the  responsible, 
main  fields  of  state  government.  And,  as  the  Governor  will  have 
authority  over  the  whole  executive  organization,  and  means  for  en- 
forcing this  authority,  so  far  as  possible  under  the  present  consti- 
tution, he  may  properly  be  held  responsible  by  public  opinion  for 
its  operation. 

The  proposed  reorganization  will  also  aid  in  the  preparation  of   Budget- 
a  proper  budget  of  estimates  as  a  basis  for  appropriations.     Each   ^j^l^'^ 
department  will  be  able  to  formulate  a  careful  estimate  of  needed   facilitated, 
appropriations,  considering  the  relative  demands  of  its  several  bureaus 
and  services;    and  these  departmental  estimates  will  be  compiled 
and  analyzed  by  the  state  comptroller  for  submission  to  the  Cover- 


494 


READINGS  IN  AMERICAN  DEMOCRACY 


An  estimate 
of  the 
economies 
expected. 


nor,  who  will  recommend  the  aggregate  budget  of  items  approved 
by  him  to  the  General  Assembly.  This  will  place  on  the  Governor 
the  responsibility  for  the  total  amount  requested.  .  .  . 

To  measure  accurately  in  statistical  and  mathematical  terms 
the  expected  improvements  is  more  diflficult  than  to  point  out  the 
general  results  likely  to  be  gained.  But  some  estimates  may  be  made 
of  the  direct  financial  advantages.  The  general  plans  of  consolida- 
tion and  reorganization  will  directly  reduce  expenditures  for  salaries 
and  expenses  of  officials,  and  for  office  expenses  by  about  $100,000 
a  year.  The  saving  proposed  in  the  extension  of  taxes  and  the  interest 
on  tax  collection  will  amount  to  $500,000  a  year.  ...  If  the  con- 
solidation of  prison  management  results  in  placing  the  cost  of  main- 
tenance on  the  same  per  capita  basis  as  in  the  charitable  institu- 
tions, there  will  be  a  further  saving  of  $200,000  a  year.  The  more 
centralized  organization  proposed  for  the  rental  and  supervision  of 
state  offices  and  for  printing  and  the  purchase  of  supplies  should 
also  bring  about  a  reduction  in  expenses  of  not  less  than  $100,000 
a  year.  [Altogether  the  saving  will  not  be  less  than  $1,000,000 
a  year.3  ... 


Previous  to 
1 92 1  there 
was  no 
Federal 
budget. 


The 

situation 

outlined. 


215.   Need  of  a  Federal  budget^ 

Previous  to  192 1,  our  national  government  had  no  budget  system. 
Some  of  the  estimates  were  prepared  by  the  administrative  depart- 
ments, under  the  direction  of  the  President,  while  other  estimates 
were  prepared  by  various  committees  in  the  House  of  Representatives. 
The  evils  of  this  situation  were  lack  of  responsibility  and  lack  of 
coordination,  resulting  in  waste  and  extravagance  in  the  handling 
of  Federal  finances.  The  pressing  need  of  a  budget  system  was  dwelt 
upon  by  President  Taft  in  a  message  to  Congress,  in  June,  191 2, 
in  the  following  language: 

Notwithstanding  the  magnitude  and  complexity  of  the  business 
which  is  each  year  conducted  by  the  executive  branch  and  financed 
by  the  Congress,  and  the  vital  relation  which  each  governmental 
activity  bears  to  the  welfare  of  the  people,  there  is  at  present  no 
provision  for  reporting  revenues,  expenditures,  and  estimates  for 
1  From  William  Howard  Taft,  Message  to  Congress,  June,  191 2. 


HONESTY  AND   EFFICIENCY  IN  OFFICE  495 

appropriations  in  such  manner  that  the  Executive,  before  submit- 
ting estimates,  and  each  member  of  Congress,  and  the  people,  after 
estimates  have  been  submitted,  may  know  what  has  been  done  by 
the  government  or  what  the  government  proposes  to  do.  .  .  . 
A  well-defined  business  or  work  program  for  the  government  has  Lack  of  a 

not  been  evolved.  *'"''' 

proRram . 

The  reports  of  expenditures  required  by  law  are  unsystematic,    Reports  of 

lack  uniformity  of  classification,  and  are  incapable  of  being  summa-  «-'^P«-"nditurcs 

■'  .  •"■'^  unsys- 

rized  so  as  to  give  to  the  Congress,  to  the  President,  or  to  the  people   tcmaiic. 

a  picture  of  what  has  been  done,  and  of  cost  in  terms  either  of  economy 

of  purchase  or  efficiency  of  organization  in  obtaining  results. 

The  summaries  of  expenditures  required  by  law  to  be  submitted 
by  the  Secretary  of  the  Treasury,  with  estimates,  not  only  do  not 
provide  the  data  necessary  to  the  consideration  of  questions  of  policy, 
but  they  are  not  summarized  and  classified  on  the  same  basis  as  the 
estimates. 

The  report  on  revenues  is  not  in  any  direct  way  related  to  the   Report  on 
expenditures,  except  as  the  Secretary  of  the  Treasury  estimates  a   ^^j)p^""y''  °°^ 
surplus  or  a  deficiency  and  this  estimate  is  based  on  accounts  which   related  to 
do  not  accurately  show  expenditures  or  outstanding  liabilities  to   ^"^"^^ 

be  met. 

Instead  of  the  President  being  made  responsible  for  estimates  Lack  of 
of  expenditures,  the  heads  of  departments  and  establishments  are   ['ji'^y"'''' 
made  the  ministerial  agents  of  the  Congress,  the  President  being 
called  on  only  to  advise  the  Congress  how,  in  his  opinion,,  expendi- 
tures may  be  reduced  or  revenues  may  be  increased  in  case  estimated 
expenditures  exceed  estimated  revenues.  .  .  . 

The   committee   organization   is  largely   the   result   of   historical   The  corn- 
development   rather   than   of   the   consideration   of   present   needs.   ^.'^.^^'^ 

Inadequate  provision  is  made  for  getting  before  each  committee   unaljle  to 

to  which  appropriations  are  referred  all  of  the  data  necessary  for  ^^^"^^  J^ 

the  consideration  of  work  to  be  done,  organization  provided  for   appropria- 

y      ^     c  r  •  tions  eflec- 

doing  work,  character  of  expenditures,  or  method  of  hnancmp.  jj^.^.,^. 

Following  the  method  at  present  prescribed,  the  estimates  sub- 
mitted by  each  organization  unit  may  have  to  be  split  up  for  con- 
sideration by  appropriation  committees  of  the  Congress  and  be  made 
the  subject  of  several  different  bills;  in  few  places  are  aU  of  the  esti- 


496 


READINGS  IN  AMERICAN  DEMOCRACY 


No  correla- 
tion of  rev- 
enues and 
appropria- 
tions. 

Conclusion. 


mates  or  appropriations  asked  for  by  a  single  organization  unit 
brought   together.  ... 

While  the  classification  and  summaries  of  estimates  do  indicate 
a  proposed  method  of  financing,  these  summaries  do  not  show  classes 
of  work  or  the  character  of  expenditures  provided  for  and  there- 
fore can  not  lay  the  foundation  for  the  consideration  of  methods 
of  financing  as  a  matter  of  governmental  pohcy,  as  is  contemplated 
under  the  Constitution. 

The  appropriations  are  just  as  unsystematic  and  incapable  of 
classification  and  summary  as  the  estimates  —  in  fact,  follow  the 
same  general  form,  making  it  difficult  and  in  many  cases  impossible 
to  determine  what  class  of  work  has  been  authorized,  how  much 
may  be  spent  for  each  class,  or  the  character  of  expenditures  to  be 
made.  ... 

Bills  for  appropriations  are  not  considered  by  the  committee  to 
which  measures  for  raising  revenues  and  borrowing  money  are  re- 
ferred, nor  are  revenues  and  borrowings  considered  by  committees 
on  appropriations  in  relation  to  the  funds  which  will  be  available. 

So  long  as  the  method  at  present  prescribed  obtains,  neither  the 
Congress  nor  the  country  can  have  laid  before  it  a  definite  under- 
standable program  of  business,  or  of  governmental  work  to  be 
financed;  nor  can  it  have  a  well-defined,  clearly  expressed  financial 
program  to  be  followed;  nor  can  either  the  Congress  or  the  Execu- 
tive get  before  the  country  the  proposals  of  each  in  such  manner 
as  to  locate  responsibility  for  plans  submitted  or  for  results.  .  .  . 


Rapid 

development 
of  budget 
reform  after 
igoo. 


216.  Essentials  of  a  good  budget  ^ 
The  movement  for  budget  reform  in  this  country  was  rapid  after 
1900.  Almost  all  of  the  states  now  have  some  sort  of  a  budget  system. 
After  a  great  deal  of  agitation  the  beginnings  of  a  National  budget 
have  been  provided  for.  In  the  spring  of  1921  a  bill  establishing  a 
budget  system  passed  both  houses  of  Congress,  and  on  June  10, 
1921,  the  bill  became  law  by  the  signature  of  President  Harding. 
These  developments  are  encouraging,  though  it  should  be  not  for- 

'  From  the  Academy  of  Political  Science,  Proceedings,  1914-1915.  New  York, 
iQiS-  Frederick  A.  Cleveland,  "Constitutional  Provision  for  a  Budget";  pp. 
I43-I4S- 


HONESTY  AND   EFFICIENCY  IN  OFFICE  497 

gotten  that  the  establishment  of  a  budget  system  does  not  mean 
that  the  arrangement  is  entirely  satisfactory.  Budgets  must  vary 
with  different  needs  and  circumstances,  and  yet  the  essentials  are 
everyivhere  the  same.  These  essentials  Professor  Frederick.  A. 
Cleveland,  one  of  the  leaders  of  budget  reform  in  this  country, 
describes  as  follows: 

Whatever  else  a  budget  is  or  is  not,  it  must  have  these  essentials:  The  two 
(i)  It  must  be  a  definite  plan  or  proposal  for  financing  the  present  <^*^ntials  o( 
and  future  needs  of  the  state;  and  (2)  it  must  be  submitted  to  a 
legislative  body  by  an  officer  who  may  be  held  responsible  for  the 
wisdom  or  unwisdom  of  its  proposals,  i.e.  it  must  serve  as  an  in- 
strument through  which  both  executive  and  legislative  responsibil- 
ities to  the  electorate  may  be  located  and  enforced. 

As  it  is  of  much  importance  that  there  be  no  question,  in  this  dis-   A  budRct 

cussion,  with  respect  to  what  is  meant  by  a  budget,  I  shall  be  still   ^"°"'? 
'  ^  ^  o  contain 

more  concrete  and  attempt  to  state  what  the  bundle  or  bag  full  of 
papers  referred  to  should  be  and  contain. 

1.  A  budget  should  contain  a  summary  statement,  in  the  simplest  a  proposed 
possible  terms,  setting  forth  a  proposed  plan  for  financing  next  year's   ^[^^"^,^1, 
requirements;    and  this  statement    should  balance  prospective  re-   next  year's 
sources  against  estimates  and  requests  for  expenditures.  requirements, 

2.  A  budget  should  be  an  instrument  of  accountability  —  a  state- 
ment prepared  by  a  responsible  executive  or  administrative  oflicer 
showing  present  financial  conditions  and  past  results. 

3.  As  an  instrument  of  accountability  and  finjincial  planning, 
a  budget  should  contain  (o)  statements  showing  actual  and  estimated 
revenues  and  expenditures;  (b)  statements  showing  actual  and  esti- 
mated financial  condition,  surplus  or  deficit. 

4.  Budget   statements   showing   actual   estimated   revenues   and   adequate 
expenditures  should  provide  all  the  information  needed  for  considering   ]."'°^'J^J^°" 
and  determining  executive  recommendations,  as  well  as  legislative   rcvcnuc-s  and 
action,  relative  to  money-raising  policy;  and  executive  recommcnda-   "f*"  '^"''^*' 
tions,  as  well  as  legislative  action,  relative  to  money-spending  policy. 

5.  The  budget  information  pertaining  to  estimated  expenditures 
sho\ild  be  such  as  to  support  and  explain  items  in  the  appropriation 
bill,  if  one  is  presented  with  the  budget,  or,  if  not,  to  enable  the 
proper  authorities  to  draw  such  a  bill. 


and  a 
"  work 
program.' 


498  READINGS  IN  AMERICAN  DEMOCRACY 

6.  Since  the  amount  of  money  to  be  voted  for  payrolls,  supplies, 
etc.,  must  be  governed  by  work  to  be  done,  the  budget  should  con- 
tain a  well-defined  "work  program".  .  .  setting  forth  what  it  is 
that  the  administration  proposes  to  do  with  the  suppUes  requested. 

7.  The  "work  program"  set  forth  in  a  budget  should  be  in  two 
parts  —  one  which  shows  the  necessary  or  proposed  costs  of  rendering 
pubUc  service,  and  one  which  shows  the  proposed  costs  of  making 
public  improvements  or  betterments  —  i.e.  current  expenses  and 
charges  should  be  clearly  distinguished  from  capital  outlays. 

8.  A  budget  should  be  transmitted  as  a  part  of  a  speech  or  message 
or  letter  from  the  responsible  officer  who  prepared  the  plan  or  pro- 
gram interpreting  the  significance  of  the  statement  and  estimates  to 
the  legislative  body  which  is  asked  to  pass  on  it.  .  .  . 


Development 
of  new  types 
of  city 
government 
after  1900. 


Has 

commission 
government 
made  good? 


217.   Results  of  the  commission  plan  of  government  ^ 

Turning  now  to  the  problem  of  honesty  and  efficiency  in  munici- 
pal government,  it  should  be  noted  that  there  are  three  chief  types 
of  municipal  government  in  this  country:  (a)  the  mayor-council 
plan,  formerly  universal  and  even  now  prevailing  in  most  American 
cities;  (b)  the  commission  plan,  first  applied  in  1900,  by  the  city  of 
Galveston,  Texas;  and  (c)  the  city-manager  plan,  which  is  a  modi- 
fication of  the  commission  plan.  One  of  the  clearest  and  most  judicial 
summaries  of  the  commission  plan  is  that  by  Professor  Munro,  in 
which  he  discusses  the  results  of  commission  government  during  the 
decade  1900-1910.    He  concludes  as  follows: 

When  the  agitation  for  the  adoption  of  the  commission  plan  took 
definite  and  forceful  shape  a  half-dozen  years  ago,  the  sponsors  of 
the  scheme  promised  that  it  would  bring  about  great  improvement 
both  in  the  personnel  and  in  the  work  of  city  administration.  How 
far  have  these  promises  been  fulfilled?  The  experience  that  we  have 
now  put  behind  us  is  not  extensive  and  varied  enough  to  give  an 
absolutely  sure  basis  for  broad  generalization;  yet  the  lapse  of  a 
decade  has  put  some  things  to  proof,  and  of  these  one  may  speak 
with  reasonable  assurance. 

'  From  the  National  Municipal  Review,  Vol.  i,  No.  4,  October,  1912.  William 
Bennett  Munro.    "Ten  Years  of  Commission  Government";  pp.  563-568. 


HONESTY  AND   EFFICIENCY  IN  OFFICE  499 

In  the  first  place,  we  were  told  at  the  outset  that  the  commission   Extent  to 
plan  would  serve  to  install  better  men  in  municipal  oflke.    [As  a  ^'^^^ 

better 

matter  of  fact,  about  the  same  sort  of  men  are  connected  with  the  public 
city  administration  as  under  the  old  mayor-council  plan.]    It  can   ^""^'^ 
fairly  be  said,  however,  that  while  the  change  to  commission  govern-   secured, 
ment  has  not  revolutionized  the  type  of  official  secured  by  the  city, 
it  has  permitted  men  of  the  same  caUbre  to  achieve  vastly  better  re- 
sidts.    This  it  has  done  by  the  simplification  of  official  machinery 
and  by  the  concentration  of  responsibility  in  fewer  hands.    In  a 
dozen  or  more  cities  the  experience  has  been  that  a  man  who  made 
a  very  ineffective  alderman  or  councillor  or  administrative  official 
under  the  old  system  of  divided  powers  has  succeeded  in  doing  ex- 
cellent work  as  a  commissioner  under  the  new  frame  of  government. 

In  the  second  place  the  sponsors  of  the  commission  plan  assured    Commission 

us  some  years  ago  that  their  scheme  of  urban  administration  would  Ko^'^mmcnt 

has  not 
secure  a  reduction  in  municipal  expenditures.     On  the  whole  the   reduced  the 

commission  form  of  government  has  failed  to  do  anything  of  the   "^"^^      "'^ 

.-  o  government. 

kind.  .  .  . 

It  is  likewise  to  be  feared  that  a  good  many  commission  governed  A  fallacy, 
cities  have  allowed  themselves  to  be  deluded  into  the  idea  that  the 
mere  establishment  of  the  new  framework  of  government  sufficiently 
guarantees  thorough  improvements  in  the  method  of  conducting 
pubUc  business.  Some  commission  charters  seem  to  have  taken  it 
for  granted  that  any  able-bodied  citizen  can  be  transformed  into 
a  municipal  expert  by  the  alchemy  of  a  popular  vote.  Yet  nothing 
can  be  plainer  than  the  fact  that  a  change  from  wasteful  and  slovenly 
to  efficient  business  methods  cannot  be  secured  by  the  simple  expedient 
of  placing  all  responsibility  in  the  hands  of  [a  commission.]  Com- 
mission charters  have  been  too  commonly  deficient  in  the  matter 
of  definite  provisions  or  expert  advice.  Their  framers  seem  to  for- 
get that  the  chief  responsibihty  for  success  or  failure  in  the  proper 
conduct  of  the  city's  affairs  must  rest  not  upon  the  commissioners 
themselves  but  upon  the  municipal  officials  whom  they  employ.  .  .  - 

These  are  some  of  the  shortcomings  which  the  experience  of  a 
decade  discloses  in  the  actual  operation  of  the  commission  plan. 
They  are  not  of  great  importance  and  all  are  easily  capable  of  remedy. 
On  the  other  hand,  the  system  of  government  by  commission  has, 


500 


READINGS  IN  AMERICAN   DEMOCRACY 


On  the 
other  hand, 
many  bene- 
fits have 
resulted 
from 

commission 
government. 


Summary 

and 

conclusion. 


as  its  sponsors  promised  it  would  do,  put  an  end  to  that  intolerable 
scattering  of  powers  and  duties  and  responsibilities  which  the  old 
type  of  administration  promoted  to  the  point  of  absurdity.  It  has 
not  freed  city  administration  from  all  good  ground  for  criticism.  No 
system  could  do  that,  but  it  has  brought  things  to  such  a  pass  that 
when  administration  is  faulty  there  are  definite  shoulders  upon  which 
to  lay  the  blame.  .  .  .  The  plan  has  made  possible  the  introduction 
of  business  methods  in  city  administration,  as  the  experience  of  at 
least  a  score  of  cities  during  the  past  half-dozen  years  amply 
proves.  .  .  . 

As  is  too  frequently  the  practice  of  those  who  stand  sponsors  for 
reform,  the  advocates  of  commission  government  have  been  disposed 
to  promise  more  than  their  plan  can  expect  permanently  to  achieve. 
To  hope  that  this  or  any  other  system  will  prove  a  self-executing 
instrument  of  civic  righteousness  is  to  avow  an  optimism  which  shows 
scant  knowledge  of  man  as  a  political  being.  But  under  the  com- 
mission plan  many  cities  have  secured  a  frame  of  government  which 
the  average  voter  can  understand;  and  a  government  that  is  to  be 
responsible  to  the  people  must  first  of  all  be  intelligible  to  them. 
Not  least  among  the  accomplishments  of  the  commission  movement 
has  been  the  fact  that  it  linked  itself  with  and  drew  into  operation 
a  dozen  features  that  have  helped  to  secure  improvement  in  various 
branches  of  municipal  administration,  such  as  nomination  by  open 
primaries,  the  short  ballot,  the  abohtion  of  the  ward  system,  direct 
legislation,  the  recall,  the  merit  system  of  appointment  and  promotion, 
publicity  in  all  municipal  business,  modern  methods  of  city  account- 
ing, and  the  concentration  of  responsibility  for  the  improper  expendi- 
ture of  public  money.  As  a  protest  against  the  old  municipal  regime 
it  has  been  very  effective;  as  a  policy  it  has,  despite  its  incidental 
shortcomings,  fidfilled  much  of  what  its  supporters  claimed  for  it. 


218.   Training  the  city  manager 

After  1914  the  city  manager  form  of  municipal  government  was 
developed  as  a  modification  of  the  commission  plan.    Where  the  city 

*  From  the  National  Municipal  Review,  Vol.  DC,  No.  3,  March,  1920.     Chester 
C.  Maxey,  "The  Traming  of  City  Managers";  pp.  144-145. 


HONESTY  AND   EFFICIENCY  IN  OFFICE  501 

manager  form  is  applied,  there  is  provision  for  a  small  elective  com-  a  great 

mission,  which  chooses  an  experienced  executive  to  manage  the  city  <*''stacle  to 

in  accordance  with  business  principles.    One  great  difficulty,  however,  of  the  city 

has  been  the  difficulty  of  finding  properly  qualified  managers,    .\lmost  '"^"^R'^'' 

three-fourths  of  the  city  managers  m  the  Lnited  States  a  few  years  scarcity  of 

ago  were  novices,  yet  the  position  demands  a  high  degree  of  skill   *^''i^"'^ 

1  •  Tirii-  ,,       ^,  „  executives, 

and  preparation.     In  the  following  passage  Mr.  Chester  C.  Ma.xey 

discusses  the  need  for  training  city  managers: 

The  fact  is  that  the  problems  of  public  administration  are  unique 
and  call  for  a  unique  training. 

The  city  manager  in  order  to  superintend  the  complex  affairs  of  What  the 
a  large  city  must  not  only  possess  unusual  executive  ability,  but  mvfst"kn"*w*^^ 
must  be  acquainted  with  public  finance  and  accounting,  and  must 
have  a  working  knowledge,  from  the  administrative  standpoint,  of 
all  of  the  functional  activities  of  a  city  government.  Most  city 
managers  have  had  to  acquire  this  full-rounded  training  and  experience 
after  taking  office,  and  the  consequences  have  not  always  been  happy. 

But  if  a  manager  is  not  to  secure  his  training  after  taking  office   Necessity  of 
and  at  the  expense  of  the  taxpayers,  he  must  have  the  advantage  of   preliminary 
education  for  his  special  task.    Such  education  has  been  very  difficult     "'"'"^• 
to  secure,  because  most  of  the  educational  institutions  which  have 
offered  courses  preparing  for  city  manager  work  have  been  unable 
to  supplement  their  formal  courses  with  practical  experience. 

In  this  particular,  the  training  school  for  pubhc  service  of  the  The  \ew 

New  York  Bureau  of  Municipal  Research  is  diiferent.     TThisI  is   ^'"''^  ^V"^.*"^" 

of   .Municipal 

primarily  a  research  organization  and  the  members  of  its  staff  devote  Research, 
themselves  principally  to  scientific  studies  and  investigations  in 
the  field  of  public  administration.  Having  surveyed  over  100  cities 
in  all  parts  of  the  country,  a  half-dozen  counties  in  various  states, 
and  two  states,  the  bureau  has  accumulated  a  vast  store  of  infor- 
mation about  the  methods  and  technique  of  pubhc  instruction  in 
the  United  States  and  has  evolved  standards  for  their  betterment. 

The  training  school  for  public  servants  is  conducted  as  a  supple-   How  it 
mentary  activity  of  the  bureau  in  order  that  persons  desiring  to   |.jj"^,^'"^'^' 
prepare  themselves  for  pubUc  work  may  profit  by  the  experience  of  public  work, 
the  bureau  and  come  into  contact  with  specialists.     The  method 
of  instruction  in  the  training  school  is  unusual.    While  formal  lectures 


50^ 


READINGS  IN  AMERICAN   DEMOCRACY 


The  course 
of  study. 


Conclusion. 


and  assignments  of  reading  are  not  dispensed  with,  the  students  learn 
most  by  doing  practical  work  under  the  supervision  of  members 
of  the  staff.  \Vhen  conditions  permit,  students  preparing  for  execu- 
tive positions  in  pubHc  Ufe  are  taken  into  the  field  with  members 
of  the  staff  who  are  conducting  surveys,  and  used  in  the  less  im- 
portant work  of  the  survey.  WTien  administrative  problems  arising 
in  connection  with  a  particular  piece  of  work  are  discussed  in  staff 
conferences,  training  school  students  are  present  to  profit  by  the 
discussions  and  to  participate  in  so  far  as  they  are  qualified.  Need- 
less to  say,  the  student  soon  acquires  a  clearer  conception  of  govern- 
ment as  a  going  concern  and  a  better  grasp  of  the  fundamental  prin- 
ciples of  management,  than  could  be  obtained  by  any  amount  of 
contact  with  books  alone,  And  the  natural  consequence  is  that  the 
students  of  the  training  school  are  apt  to  develop  a  practical  sense 
and  maturity  of  judgment  that  come  from  experience,  as  well  as  the 
background  and  vision  that  come  from  well-rounded  study. 

Some  conception  of  the  character  and  scope  of  the  city  manager 
training  may  be  had  from  the  following  list  of  the  subjects  included 
in  the  course  of  study:  The  structure  and  organization  of  municipal 
government;  municipal  charters;  the  relation  of  the  city  and  the 
state;  municipal  home  rule ;  statistics;  civil  service  and  salary  stand- 
ardization; assessment  and  collection  of  taxes;  debt  policies  and 
fund  management;  budget  making  and  administration;  government 
purchasing;  government  accounting;  management  of  municipal 
public  works;  street  cleaning,  and  refuse  disposal;  management 
of  parks  and  playgrounds;  public  health  administration;  manage- 
ment of  charitable  and  correctional  institutions;  police  administra- 
tion; fire  administration;  municipal  public  utilities;  management  of 
public  education. 

It  is  not  contended  that  in  this  or  any  school  city  managers  can 
be  made  to  order,  but  only  that  the  development  of  such  schooling 
at  New  York  and  elsewhere  is  due  to  be  an  important  factor  in 
rounding  out  the  success  of  the  commission-manager  movement. 


HONESTY  AND   EFFICIENCY  IN  OFFICE  503 

Questions  on  the  foregoing  Readings 

1.  Name  some  factors  which  influence  legislation  in  this  country. 

2.  To  what  extent  is  lack  of  responsibility  an  obstacle  to  intelligent 

legislation  in  this  country? 

3.  What  two  kinds  of  advice  does  the  legislator  need  in  lawmaking? 

4.  What  is   meant  by  saying  that  lack  of  principle  is  a  defect  in 

American  legislation? 

5.  Where   and   when   was   the   first   legislative   reference   bureau   es- 

tablished? 

6.  What  is  the  best  way  to  improve  legislation? 

7.  What  is  the  importance  of  a  library  in  helping    the    lawmaker? 

8.  Discuss  the  arrangement  of  documents,  bills  and  other  literature 

in  a  good  legislative  reference  bureau. 

9.  What  qualities  should  be  possessed  by  the  head  of  a  legislative 

reference  bureau? 
ID.    What  is  the  importance  of  a  trained  draftsman  in  legislation? 

11.  Explain  the  lack  of  correlation  in  state  administration. 

12.  WTiat  is  meant  by  the  "ineffective  supervision"   in  state  adminis- 

tration ? 

13.  Explain  the  charge  that  the  confused  character  of  the  state  admin- 

istrative offices  often  results  in  inadequate  ad\dce  on  legislation. 

14.  How   does  irresponsible  government   result  from  a  defective  ar- 

rangement of  state  administrative  offices? 

15.  Explain  how  greater  economy  might  be  expected  from  a  reorgan- 

ization and  consolidation  of  state  administrative  offices. 

16.  What  would  be  the  effect  of  such  reorganization  upon  efficiency? 

17.  How  might  such  reorganization  render  possible  greater  assistance 

in  legislation? 

18.  How  would  such  reorganization  aid  in  securing  responsible  govern- 

ment? 

19.  Give  some  examples  of  the  economies  which  the  Illinois  Efficiency 

and  Economy  Committee  expected   to  result  from  a  reorgan- 
ization of  the  state  administration. 

20.  How    were    financial    estimates    for    the    Federal    administration 

prepared  previous  to  192 1? 

21.  Show  how  Federal  expenditures  were  unsystematic  before   iq2i. 

22.  What  part  did   the   committee   system  play  in   the   liandling  of 

revenues  and  appropriations? 

23.  What  was  President  Taft's  conclusion  as  to  the  situation  existing 

in  national  finances  in  191 1? 

24.  During  what  period  of  our  history  was  the  movement  for  budget 

reform  most  active? 
2K.    Name  the  two  essentials  of  a  good  budget. 


504  READINGS  IN  AMERICAN  DEMOCRACY 

26.  Outline  some  of  the  more  important  things  which  a  budget  should 

contain. 

27.  What  are  the  three  chief  forms  of  municipal  government  in  the 

United  States? 

28.  To  what  extent  has  commission  government  secured  better  public 

service? 

29.  Explain  the  error  of  supposing  that  good  government  may  be 

secured  merely  by  establishing  a  commission  form  of  government. 

30.  Name   some  important  advantages  of  commission  government. 

31.  What  is  a  great  obstacle  to  the  success  of  the  city  manager  plan 

of  government? 

32.  How  does  the   New  York  Bureau  of  Municipal  Research  train 

individuals  for  city  manager  positions? 

33.  Name  some  of  the  courses  of  study  at  this  institution. 


CHAPTER  XXXVII 

THE   EXTENSION    OF   POPULAR   CONTROL 

219.    Constitutional  provision  for  direct  legislation  ' 
A  recent  and  important  movement  in  American  politics  is  that    Popular 
which   is   concerned  wath  the   extension  of  popular   control.     Two   '^°""'**' 
methods  of  extending  the  direct  control  of  the  people  over  government 
are  the  Initiative  and  the  Referendum,  which,  taken  together,  are 
known  as  Direct  Legislation.    Direct  Legislation  has  been  provided 
for  in  more  than  a  third  of  tte  states,  and  in  some  of  these  by  con-   j^  Oklahoma: 
stitutional  provision.     Oklahoma,  for  example,  entered  the  Union 
in  1907  with  a  constitution  which  contained  the  following  provisions 
for  the  Initiative  and  the  Referendum: 

Section  i.   The  legislative  authority  of  the  state  shall  be  vested   Powers 
in  a  legislature,  consisting  of  a  senate  and  a  house  of  representatives;   [^^pi° 
but  the  people  reserve  to  themselves  the  power  to  propose  laws  and 
amendments  to  the  constitution  and  to  enact  or  reject  the  same  at 
the  poUs  independent  of  the  legislature,  and  also  reserve  power  at 
their  own  option  to  approve  or  reject   at  the  polls  any  act  of  the 

legislature. 

Section  2.   The  first  power  reserved  by  the  people  is  the  initiative.   The 
and  eight  per  centum  of  the  legal  voters  shall  have  the  right  to  pro-     "'^^^'<= 
pose  any  legislative  measure,  and  fifteen  per  centum  of  the  legal 
voters  shaU  have  the  right  to  propose  amendments  to  the  consti- 
tution by  petition,  and  every  such  petition  shaU  include  the  full 
text  of  the  measure  so  proposed. 

The  second  power  is  the  referendum,  and  it  may  be  ordered  (except   J^"j^J^^^^^^ 
as  to  laws  necessary  for  the  immediate  preservation  of  the  public      '  '-"^"  ""• 
peace,  health,  or  safety),  either  by  petition  signed  by  five  per  centum 
of  the  legal  voters  or  by  the  legislature  as  other  bills  are  enacted.  .  .  . 

Section  3.   Referendum  petitions  shall  be  filed  with  the  secretary 
1  From  the  Constitution  of  Oklahoma,  1907. 
505 


5o6 


READINGS  IN  AMERICAN  DEMOCRACY 


Rules  gov- 
erning Direct 
Legislation. 


Referendum 
on  parts  of 
an  act. 


Powers 
of  the 
legislature. 


Protective 
legislation. 


of  State  not  more  than  ninety  days  after  the  final  adjournment  ot 
the  session  of  the  legislature  which  passed  the  bill  on  which  the 
referendum  is  demanded.  The  veto  power  of  the  Governor  shall  not 
extend  to  measures  voted  on  by  the  people.  All  elections  on  measures 
referred  to  the  people  of  the  state  shall  be  had  at  the  next  election 
held  throughout  the  state,  except  when  the  legislature  or  the  Gover- 
nor shall  order  a  special  election  for  the  express  purpose  of  making 
such  reference.  Any  rheasure  referred  to  the  people  by  the  initiative 
shall  take  effect  and  be  in  force  when  it  shall  have  been  approved 
by  a  majority  of  the  votes  cast  in  such  election.  Any  measure  re- 
ferred to  the  people  by  the  referendum  shall  take  effect  and  be  in 
force  when  it  shall  have  been  approved  by  a  majority  of  the  votes 
cast  thereon  and  not  otherwise. 

The  style  of  all  bills  shaU  be:  "Be  It  Enacted  by  the  People  of 
the  State  of  Oklahoma. " 

Petitions  and  orders  for  the  initiativ  e  and  for  the  referendum  shall 
be  filed  with  the  secretary  of  state  and  addressed  to  the  Governor 
of  the  state,  who  shall  submit  the  same  to  the  people.  The  legisla- 
ture shall  make  suitable  provisions  for  carrying  into  effect  the  pro- 
visions of  this  article. 

Section  4.  The  referendum  may  be  demanded  by  the  people  against 
one  or  more  items,  sections,  or  parts  of  any  act  of  the  legislature 
in  the  same  manner  in  which  such  power  may  be  exercised  against 
a  complete  act.  The  filing  of  a  referendum  petition  against  one  or 
more  items,  sections,  or  parts  of  an  act  shall  not  delay  the  remainder 
of  such  act  from  becoming  operative.  .  .  . 

Section  6.  Any  measure  rejected  by  the  people,  through  the  powers 
of  the  initiative  and  referendum,  cannot  be  again  proposed  by  the 
initiative  within  three  years  thereafter  by  less  than  twenty-five  per 
centum  of  the  legal  voters. 

Section  7.  The  reservation  of  the  powers  of  the  initiative  and  ref- 
erendum in  this  article  shall  not  deprive  the  legislature  of  the 
right  to  repeal  any  law,  propose  or  pass  any  measure,  which  may 
be  consistent  with  the  constitution  of  the  state  and  the  Constitution 
of  the  United  States. 

Section  8.  Laws  shall  be  provided  to  prevent  corruption  in  making, 
procuring,  and  submitting  initiative  and  referendum  petitions. 


THE   EXTENSION  OF  POPULAR   CONTROL  507 


220,   Initiative  and  Referendum  petitions 


as  lo 
signatures. 


In  every  state  in  which  the  Initiative  and  Referendum  are  found,   Protfxtive 
laws  have  been  enacted  to  regulate  the  appUcation  of  these  devices,   •^''^'^i'"" 

1111-1  accompany- 

The  act  passed  by  the  legislature  of   Missouri  in  1909  is  typical,   ing  the  Ini- 

This  statute  provided  the  forms  of  petition  for  the  Referendum  and   "'"'^'^  •''"'' 

KcfcTL-nuum. 
Initiative,  specified  rules  for  the  filing  of  these  petitions,  provided 

penalties  for  the  violations  of  the  act,  and  otherwise  sought  to  safe- 
guard Direct  Legislation.  The  forms  of  the  Initiati\'e  and  Referen- 
dum petitions,  and  the  nature  of  the  warning  against  their  being   j^e 

fraudulently  signed,  are  illustrated  by  the  following  extracts  from   Missouri 
,       ,  ,.  .  ^  statute: 

the  Missouri  statute  of  1909: 

Section  i.  Form  of  petition  to  refer:  The  following  shall  be  sub- 
stantially the  form  of  petition  for  the  referendum  to  the  people  on 
any  act  passed  by  the  general  assembly  of  the  state  of  Missouri. 

It  is  a  felony  for  any  one  to  sign  any  initiative  or  referendum   Warning 
petition  with  any  name  other  than  his  own,  or  to  sign  knowingly  his 
name  more  than  once  for  the  same  measure,  or  to  sign  such  petition 
when  he  is  not  a  legal  voter. 

Petition  roR  Referendum  Form 

To  the  Honorable    ,  secretary   of  state  for  the  state  of    j^.n^^^jjng 

Missouri:    We,  the  undersigned,  citizens  and  legal  voters  of  the  state    that  a  law 

of  Missouri  (and  the  county  of ),  respectfully  order  that  the    \x  referred 

senate   (or  house)   bill  No.    .  .  . ,  entitled   (title  of  act)  passed  by  the    |oJ^^' 

general  assembly  of  the  state  of  Missouri  at  the  regular 

(special)  session  of  said  general  assembly,  shall  be  referred  to  the 
people   of   the   state,   for  their  approval   or  rejection,  at   the  regular 

(special)  election  to  be  held  on  the   .  .  .   day  of   a.d.  19., 

and   each   for   himself  says:    I   have   personally  signed   this   petition; 

I  am  a  legal  voter  of  the  state  of  Missouri   and  county  of ; 

my  residence  and  postoftice  are  correctly  written  after  my  name. 

Name ,  Residence  ,  Postoflicc 

(If  in  a  city,  street  and  number.) 

(Here  follow  numbered  lines  for  signatures.) 

Section  2.  Form  of  petition  to  initiate  an  act.  —  The  following 
shall  be  substantially  the  form  of  petition  for  any  law  or  amendment 
to  the  constitution  of  the  state  of  Missouri,  proposed  by  the  initiative. 

»  From  the  Statutes  of  the  State  of  Missouri,  Initiative  and  Referendum  Law,  190Q. 


people. 


Form 
used  in 
initiating 
an  act. 


508  READINGS  IN  AMERICAN  DEMOCRACY 

Initiative  Petition 

To  the  Honorable   ,  secretary  of  state  for  the  state  of 

Missouri: 

We,   the   undersigned,   citizens   and   legal   voters   for   the   state   of 

Missouri,  and  of  the  county  of   ,  respectfully  demand  that 

the  following  proposed  law  (or  amendment  to  the  constitution,  as  the 
case  may  be),  shall  be  submitted  to  the  legal  voters  of  the  state  of 
Missouri,  for  their  approval  or  rejection,  at  the  regular  (special)  election 

to  be  held  on  the day  of A.D.  19 ... ,  and  each 

for  himself  says:    I  have  personally  signed  this  petition;    I  am  a  legal 

voter  of  the  state  of  Missouri  and  of  the  county  of  ;    my 

residence  and  postoffice  are  correctly  written  after  my  name. 

Name ,  Residence ,  Postoffice 

(If  in  a  city,  street  and  number.) 

(Here  follow  numbered  lines  for  signatures.) 

Every  such  sheet  for  petitioners'  signatures  shall  be  attached  to  a 
full  and  correct  copy  of  the  title  and  text  of  the  measure  so  proposed 
by  the  initiative  petition.  .  .  . 


Necessity  of 
educating 
the  voters 
who  are  to 
engage  in 
Direct 
L^islation. 


The  prepara- 
tion of  the 
ballot  title. 


221.   Helping  the  voters  to  make  laws  ^ 

One  reason  for  the  development  of  Direct  Legislation  has  been 
the  feeling  that  state  legislatures  are  inefficient.  But  in  so  far  as 
this  inefficiency  is  due  to  the  legislator's  lack  of  training  in  technical 
matters,  direct  legislation  is  no  remedy.  Indeed,  if  the  Initiative 
and  Referendum  are  appUed  to  complex  and  technical  subjects,  it 
may  be  that  the  voters  wiU  prove  utterly  incapable  of  an  intelligent 
judgment.  In  the  case  of  even  relatively  simple  matters,  more- 
over, an  effective  use  of  the  Initiative  and  Referendum  necessitates 
some  preUminary  education.  The  following  extracts  from  the  election 
laws  of  Oregon  illustrate  one  method  of  attempting  this  education 
of  the  voters: 

Section  5.  When  any  measure  shall  be  filed  with  the  secretary 
of  state  to  be  referred  to  the  people  of  the  state,  or  of  any  county 
or  district  composed  of  one  or  more  counties,  either  by  the  legislative 
assembly  or  by  the  referendum  petition,  and  when  any  measure 
shall  be  proposed  by  initiative  petition,  the  secretary  of  state  shall 
forthwith  transmit  to  the  attorney-general  of  the  state  a  copy 
1  From  the  Statutes  of  the  State  of  Oregon,  Election  Law,  1907. 


THE  EXTENSION  OF  POPULAR  CONTROL     509 

thereof,  and  within  ten  days  thereafter  the  attorney-general  shall 
provide  and  return  to  the  secretary  of  state  a  ballot  title  for  said 
measure.  .  .  .  The  ballot  title  shall  be  printed  with  the  numbers  of 
the  measure,  on  the  official  ballot.  In  making  such  ballot  the 
attorney-general  shall,  to  the  best  of  his  ability,  give  a  true  and  im- 
partial statement  of  the  purpose  of  the  measure,  and  in  such  lan- 
guage that  the  ballot  title  shall  not  be  intentionally  an  argument,  or 
likely  to  create  prejudice,  either  for  or  against  the  measure.  .  .  . 

Section  8.   Not  later  than  the  first  Monday  of  the  third  month  next    Priiiiinfi" 
before  any  regular  general  election,  nor  later  than  thirty  days  before  |^""  ^'^'"but- 
any  special  election,  at  which  any  proposed  law,  part  of  an  act,   arguments, 
or  amendment  to  the  constitution  is  to  be  submitted  to  the  people, 
the  secretary  of  state  shall  cause  to  be  printed  in  pamphlet  form  a 
true  copy  of  the  title  and  text  of  each  measure  to  be  submitted, 
with  the  number  and  form  in  which  the  ballot  title  thereof  will  be 
printed  in  the  official  ballot. 

The  person,  committee,  or  duly  authorized  oiTicers  of  any  organi- 
zation filing  any  petition  for  the  initiative,  but  no  other  person  or 
organization,  shall  have  the  right  to  file  with  the  secretary  of  state 
for  printing  and  distribution  any  argument  advocating  such  measure; 
said  argument  shall  be  filed  not  later  than  the  first  Monday  of  the 
fourth  month  before  the  regular  election  at  which  the  measure  is  to 
be  voted  upon.  Any  person,  committee,  or  organization  may  file 
with  the  secretary  of  state,  for  printing  and  distribution,  any  argu- 
ments they  may  desire,  opposing  any  measure,  not  later  than  the 
fourth  Monday  of  the  fourth  month  immediately  preceding  such 
election. 

Arguments  advocating  or  opposing  any  measures  referred  to  the 
people  by  the  legislative  assembly,  or  by  referendum  petition,  at  a 
regular  general  election,  shall  be  governed  by  the  same  rules  as  to 
time,  but  may  be  filed  with  the  secretary  of  state  by  any  person. 
committee,  or  organization;  in  the  case  of  measures  submitted  at 
a  special  election,  all  arguments  in  support  of  such  measure  at  least 
sixty  days  before  such  election.  But  in  every  case  the  p?rson  or  per- 
sons offering  such  arguments  for  printing  and  distribution  shall 
pay  to  the  secretary  of  state  sufficient  money  to  pay  all  the  expenses 
for  paper  and  printing  to  supply  one  copy  with  every  copy  of  the 


5IO 


READINGS  IN  AMERICAN  DEMOCRACY 


Binding 
the  meas- 
ures and 
arguments. 


The  cost. 


Distribution 
of  the 
pamphlets. 


measure  to  be  printed  by  the  state;  and  he  shall  forthwith  notify 
the  persons  offering  the  same  of  the  amount  of  money  necessary. 

The  secretary  of  state  shall  cause  one  copy  of  each  of  said  argu- 
ments to  be  bound  in  the  pamphlet  copy  of  the  measures  to  be  sub- 
mitted as  herein  provided,  and  all  such  measures  and  arguments  to 
be  submitted  at  one  election  shall  be  bound  together  in  a  single  pam- 
phlet. All  the  printing  shaU  be  done  by  the  state.  .  .  .  The  title 
page  of  every  measure  bound  in  said  pamphlet  shaU  show  its  ballot 
title  and  ballot  numbers.  The  title  page  of  each  argument  shall 
show  the  measure  or  measures  it  favors  or  opposes  and  by  what 
persons  or  organization  it  is  issued.  When  such  arguments  are 
printed,  he  shall  pay  the  state  printer  therefor  from  the  money  de- 
posited with  him  and  refund  the  surplus,  if  any,  to  the  parties  who 
paid  him.  The  cost  of  printing,  binding,  and  distributing  the  meas- 
ures proposed,  and  of  binding  and  distributing  the  arguments,  shaU 
be  paid  by  the  state  as  a  part  of  the  state  printing,  it  being  intended 
that  only  the  cost  of  paper  and  printing  the  arguments  shall  be  paid 
by  the  parties  presenting  the  same,  and  they  shall  not  be  charged 
any  higher  rate  for  such  work  than  is  paid  by  the  state  for  similar 
work  and  paper. 

Not  later  than  the  fifty-fifth  day  before  the  regular  election  at 
which  such  measures  are  to  be  voted  upon,  the  secretary  of  state 
shall  transmit  by  mail,  with  postage  fully  prepaid,  to  every  voter 
in  the  state  whose  address  he  may  have,  one  copy  of  such  pam- 
phlet. ...  In  the  case  of  a  special  election  he  shall  mail  said  pamphlet 
to  every  voter  not  less  than  twenty  days  before  said  election. 


Growth  of 
the  Recall 
after  1903. 


222.    Constitutional  provision  for  the  Recall  ^ 

The  Initiative  and  the  Referendum  are  the  two  most  widespread 
forms  of  direct  popular  control;  the  third  and  less  well-known  form 
is  the  Recall.  The  Recall  is  a  device  whereby  certain  elective  officials 
who,  it  is  claimed,  have  not  given  satisfaction  in  office,  may  be  required 
to  stand  for  reelection  before  the  end  of  their  term.  In  its  modem 
form  the  Recall  was  first  used  in  1903  in  Los  Angeles.  The  device 
has  since  been  adopted  in  a  number  of  states,  chiefly  in  the  West. 
'  From  the  Constitution  of  Arizona,  1910. 


THE  EXTENSION  OK   POPULAR   CONTROL  511 

The  following  extract  from  the  constitution  of  Arizona  illustrates 
the  way  in  which  a  state  may  provide  a  constitutional  basis  for 
this  form  of  popular  control : 

Article  VIII,  Section   i.  Every  public  oflicer  in   the  state  of  Every  dec- 
Arizona,  holding  an  elective  office,  either  by  election  or  appoint-   l'^'*^  °^^^'^ 
1  •  11    r  1       «-        1         .  '"  Arizona 

ment,  is  subject  to  recall  from  such  office  by  the  qualified  electors  sulo'cct  to 
of  the  electoral  district  from  which  candidates  are  elected  to  such  ^'^  V^caii. 
office.  Such  electoral  district  may  include  the  whole  state.  Such 
number  of  said  electors  as  shall  equal  twenty-five  per  centum  of  the 
number  of  votes  cast  at  the  last  preceding  general  election  for  all 
of  the  candidates  for  the  office  held  by  such  officer,  may  by  petition, 
which  shall  be  known  as  a  Recall  Petition,  demand  his  recall. 

Section  2.   Every  Recall  Petition  must  contain  a  general  state-  Nature  of 
ment,  in  not  more  than  two  hundred  words,  of  the  grounds  of  such  th<^  Recall 

.  ...  I'cUUon. 

demand,  and  must  be  filed  in  the  office  in  which  petitions  for  nomi- 
nations to  the  office  held  by  the  incumbent  are  required  to  be  filed. 
The  signatures  to  such  Recall  Petition  need  not  all  be  on  one  sheet 
of  paper,  but  each  signer  must  add  to  his  signature  the  date  of  his 
signing  said  petition,  and  his  place  of  residence,  giving  his  street 
and  number,  if  any,  should  he  reside  in  a  town  or  city.  One  of  the 
signers  of  each  sheet  of  such  petition,  or  the  person  circulating  such 
sheet,  must  make  and  subscribe  an  oath  on  said  sheet,  that  the  sig- 
natures thereon  are  genuine. 

Section  3.  If  said  officer  shall  offer  his  resignation  it  shall  be  ac-  Tlic  Recall 
cepted,  and  the  vacancy  shall  be  filled  as  may  be  provided  by  law.  '^'^'^'^ 
If  he  shall  not  resign  within  five  days  after  a  Recall  Petition  is  filed, 
a  special  election  shall  be  ordered  to  be  held,  not  less  than  twenty, 
nor  more  than  thirty  days  after  such  order,  to  determine  whether 
such  officer  shall  be  recalled.  On  the  ballots  at  said  election  shall 
be  printed  the  reasons  as  set  forth  in  the  petition  for  demanding  his 
recall,  and,  m  not  more  than  two  hundred  words,  the  officer's  justifi- 
cation of  his  course  in  office.  He  shall  continue  to  perform  the  duties 
of  his  office  until  the  result  of  said  election  shall  have  been  officially 

declared. 

Section  4.   Unless  he  otherwise  request,  in  writing,  his  name  shall    The  result 
be  placed  as  a  candidate  on  the  official  baUot  without  nomination.   ^^^ 
Other  candidates  for  the  office  may  be  nominated  to  be  voted  for 


512 


READINGS  IN  AMERICAN   DEMOCRACY 


Limitations 
upon  the 
power  to 
recall. 


Application 


at  said  election.  The  candidate  who  shall  receive  the  highest  number 
of  votes,  shall  be  declared  elected  for  the  remainder  of  the  term. 
Unless  the  incumbent  receive  the  highest  number  of  votes,  he  shall 
be  deemed  to  be  removed  from  office,  upon  qualification  of  his  suc- 
cessor. In  the  event  that  his  successor  shall  not  qualify  within 
five  days  after  the  result  of  said  election  shall  have  been  declared, 
the  said  office  shall  be  vacant,  and  may  be  filled  as  provided  by  law. 

Section  5.  No  Recall  Petition  shall  be  circulated  against  any 
officer  until  he  shall  have  held  his  office  for  a  period  of  six  months, 
except  that  it  may  be  filed  against  a  member  of  the  Legislature  at  any 
time  after  -five  days  from  the  beginning  of  the  first  session  after  his 
election.  After  one  Recall  Petition  and  election,  no  further  Recall 
Petition  shall  be  filed  against  the  same  officer  during  the  term  for  which 
he  was  elected,  unless  petitioners  signing  such  petition  shall  first  pay 
into  the  public  treasury  which  has  paid  such  election  expenses, 
all  expenses  of  the  preceding  election. 

Section  6.  The  general  election  laws  shall  apply  to  recall  elec 


of  the  general   [\q-^^  j^  gQ  fg^j-  g^g  applicable.    Laws  necessary  to  facilitate  the  opera- 


election  laws. 


tion  of  the  provisions  of  this  article  shall  be  enacted. 


The  Recall 
in  practice. 


Industrial 
disorder 
sets  a  Recall 
Petition 
in  motion. 


223.   An  example  of  how  the  Recall  is  used  ^ 

A  satisfactory  decision  upon  the  merits  of  the  Recall  is  difficult 
because  it  is  so  recent  a  development,  and  still  so  little  used,  that 
few  data  are  available.  The  state-wide  Recall  has  been  in  existence 
for  more  than  a  decade,  yet  few  state  officials  have  bean  removed 
by  it.  There  are  more  cases  in  which  the  Recall  has  been  used 
against  municipal  officials,  though  not  always  wisely  and  not  always 
with  success.  In  the  following  selection,  Mr.  F.  M.  Shannonhouse 
describes  the  use  of  the  Recall  in  Charlotte,  North  CaroHna,  in  1919: 

[In  the  summer  of  1919  a  street  car  strike  developed  in  Charlotte. 
On  one  occasion]  mobs  all  over  the  city,  composed  of  delegations  from 
the  various  cotton  mills,  stoned  the  cars  and  engaged  in  other  law- 
lessness. The  police  force  remained  practically  inactive.  The  day 
the  cars  stopped,  and  the  disorders  above  mentioned  occurred,  Mon- 

^  From  the  National  Municipal  Review,  Vol.  rx,  No.  i,  January,  1920.  F.  M. 
Shannonhouse,  "How  the  Recall  Worked  in  Charlotte";  pp.  4-5. 


THE  EXTENSION  OK  POPULAR  CONTROL     513 

day,  August  25,  numbers  of  reputable  citizens  signed  the  petition  for 
a  Recall  [against  the  mayor]  and  others  threatened  to  sign  unless 
order  was  maintained.  [That  night  a  mob  gathered  in  front  of  the 
car  barns,  held  a  conference],  and  voted  to  enter  the  car  bam  and 
"get"  the  strike  breakers.  Upon  approaching  the  barn  a  shot  was 
fired  —  the  mob  claims  by  chief  of  police,  the  policemen  claim  by  a 
member  of  the  mob  —  immediately  followed  by  promiscuous  shooting, 
resulting  in  five  of  the  mob  being  killed  and  twenty  or  thirty  others 
being  wounded. 

Peace,  long  delayed,  reigned.  Immediately  the  demand  for  the  Re- 
call was  taken  by  the  mob,  and  a  large  portion  of  union  labor.  ... 
A  committee  nominated  officers  to  run  on  the  Recall  Petition.  .  .  . 

The  recall  candidate  for  mayor  made  the  issue  the  unlawful  shoot-  The  result 
ing  at  the  car  barn.  The  attitude  of  a  large  number  who  had  origi- 
nally signed  the  recall  petition  suddenly  reversed.  Our  newspapers 
and  citizens,  neutral  so  far  as  unionism  was  concerned,  accepted  the 
issue,  waged  a  fight  and  defeated  the  Recall  Petition  by  a  vote  of 
3,300  to  1,900,  the  biggest  election  ever  held  in  the  city. 

It  was  not  a  question  of  candidates.    It  was  simply  a  question  of   Significance 
enforcement  of  the  law  for  the  present  and  the  future.    The  city 
commissioners,   unionists  and  all  others  have  learned   where   this 
community  stands  on  that  issue. 

While  the  Recall  is  condemned  by  a  great  many,  it  is  the  opinion  of  the  RecaU 
of  many  familiar  with  the  apathy  and  indifference  on  the  part  of  a 
majority  of  the  citizens  that  the  Recall  Election  led  to  a  campaign  of 
education  and  action  absolutely  necessary  and  essential  to  head  off 
a  rapidly  growing  spirit  of  bolshevism,  class  autocracy  and  political 
chaos  such  as  would  have  led  to  results  unknown.   .  .  . 

The  RecaU  rendered  an  invaluable  service  under  our  most  tr>'- 
ing  conditions,  and  amply  justified  its  inclusion  in  our  charter. 
Present  and  new  conditions  make  necessary  some  proper  agency  for 
the  majority  to  ascertain  immediately  where  they  stand,  and  whether 
or  not  the  majority  shaU  rule,  and  particularly  so  when  the  city 
government  is  committed  to  the  hands  of  three  or  a  few  men  with 
full  legislative  and  executive  authority. 

The  Recall  Election  brought  out  one  thousand   to  fifteen  hun-   Conclusion, 
dred  more  voters  than  ever  voted  before  in  a  city  election,  because 


514 


READINGS  IN  AMERICAN  DEMOCRACY 


it  was  not  "politics. "  It  was  law,  order,  security,  Ufe  for  all  —  the 
union  man  and  the  non-union  man.  The  fire  was  quenched  instead 
of  being  aUowed  to  smoulder  for  months  awaiting  a  regular  election, 
whUe  the  peripatetic  agitator  and  selfish  and  unscrupulous  office 
seeker  would  have  fanned  the  flame  of  hatred  and  discontent  in  the 
community  by  his  misrepresentations. 


The  Initia- 
tive, the 
Referendum, 
and  the 
Recall  are 
relatively    , 
little  used. 


Popular 
control  in 
Alabama, 

California, 
Ulmois, 
Iowa, 
Kansas, 

Montana, 


224.   Popular  control  chiefly  a  threat^ 

The  Initiative,  the  Referendum,  and  the  Recall  are  seldom  used 
in  most  of  the  cities  and  states  which  have  provided  for  these  forms 
of  direct  popular  control.  In  an  investigation  conducted  by  him  a 
few  years  ago,  Dr.  Charles  F.  Taylor  found  that  of  197  municipalities 
which  had  provided  for  the  Initiative,  the  Referendum  and  the 
Recall,  137  had  not  used  any  of  these  devices.  It  is  true,  of  course, 
that  these  measures  may  be  more  valuable  in  their  existence  than 
in  their  use,  that  is  to  say,  they  may  be  of  service  by  inducing  a 
keen  sense  of  duty  and  responsibility  in  the  minds  of  officials,  with- 
out, however,  requiring  actual  use.  The  following  summaries  by 
Dr.  Taylor  illustrate  something  of  the  degree  to  which  these  three 
measures  of  popular  control  have  been  used: 

Birmingham,  Ala.  (April,  191 1.)  Has  used  the  referendum  twice: 
January,  191 2,  electric  light  contract;  September,  191 2,  water  con- 
tract.   In  both  instances  contracts  were  annulled. 

Santa  Cruz,  Cal.  (February,  1911.)  Initiative:  May  6,  1913. 
Liquor  license  ordinance;    rejected. 

Moline,  III.  (April,  1911.)  Initiative:  July  23,  1912.  Telephone 
franchise;   "carried  by  large  majority." 

Marshalltown,  Iowa.  One  attempt  has  been  made  to  recall  the 
mayor:  failed. 

Pratt,  Kan.  Referendum:  July,  1913,  fixing  electric  light  rates. 
"Ordinance  'knocked  out.'"  Recall:  September,  1913,  unsuccessful 
attempt  to  recall  the  mayor. 

Missoula,  Mont.  (July,  191 1.)  Initiative:  General  election,  191 2, 
on  question  of  closing  saloon  on  Sundays;   carried. 

'  From  the  National  Municipal  Review,  Vol.  ra,  No.  4.  October,  1914.  Charles 
F.  Taylor,  "Municipal  Initiative,  Referendum  and  Recall  in  Practice";  pp,  695- 
700. 


THE  EXTENSION  OF  POPULAR  CONTROL  515 

Ocean  City,  N.J.  "Have  had  the  initiative  and  referendum  invokai   New  Jersey, 
a  number  of  times,   possibly  two  each,  with  satisfactory  results. 
No  recalls  have  been  made  or  attempted. " 

Greensboro,  N.C.    (March,  191 1.)    Initiative,  191 1;   establishment   North 
of  a  municipally  owned  and  operated  meat  market,  the  city  to  buy  ^^^'•"•■*> 
and  sell  meat;  defeated. 

Mandan,  N.D.    Recall:  One  unsuccessful  attempt.  North  Dakota, 

Bartlesvilk,  Okla.  (August,   1910.)     Recall:    September  14,   191 1.   Oklahoma, 
Attempt  to  recall  mayor  and  two  city  commissioners.     Failed  on 
account  of  insufficiency  of  petition. 

Portland,  Ore.   (1903.)    [The  Initiative  and  the  Referendum  have  Oregon, 
been  used  rather  freely,  and  on  the  whole  successfully.] 

Dallas,  Texas.     (April,  1907.)     [The  Initiative,  the  Referendum   Texas, 
and  the  Recall  have  been  used  rather  freely.] 

Hoquiam,  Wash.    (August,  1911.)    Recall:  April  24,  191 2.    Mayor  Washington, 

recalled  on  the  charge  of  incompetency. 

Oskkosh,  Wis.    Referendum:   Fall  of  191 2,  general  election.    Shall   ?"!^ 

\\  isconsm 

city  own  water  works?  carried  by  an  overwhelming  majority.  .  .  . 

We  see  in  this  review  a  safe,  healthy  and  commendable  exercise  of  Conclusion, 
direct  powers  of  the  voters  in  the  public  affairs  of  municipalities. 
These  powers  have  not  been  abused,  as  is  plainly  seen  by  the  large 
number  of  municipalities  which  have  these  powers,  but  which  have 
never  used  them;  and  in  the  fact  that  in  no  place  has  their  use  been 
"cranky"  or  excessive.  These  powers  have  been  used  rather  freely 
in  Portland,  Oregon,  and  in  Dallas,  Texas,  but  we  have  no  evidence 
that  there  is  any  sentiment  in  these  places  for  the  abolition  of  these 
powers  on  account  of  their  somewhat  free  use.  On  the  contrary,  wc 
may  reasonably  assume  that  the  use  of  these  powers  is  an  evidence 
of  their  appreciation  —  when  there  is  occasion  for  their  use.   .    .    . 


Questions  on  the  foregoing  Readings 

1.  What  is  meant  by  Direct  Legislation? 

2.  What  provision  for  the  Initiative  is  contained  in  the  constitution 

of  Oklahoma? 

3.  What  does  this  constitution  say  concerning  the  Referendum? 

4.  What  are  some  of  the  ways  in  which  statutes  may  regulate  the 

use  of  the  Initiative  and  Referendum? 


5l6  READINGS  IN  AMERICAN  DEMOCRACY 

5-    What  does  the  Missouri  law  have  to  say  concerning  false  signatures 
to  Initiative  and  Referendum  petitions? 

6.  Describe  the  form  of  petition  for  Referendum  in  Missouri. 

7.  Describe  the  form  of  petition  used  in  the  case  of  the  Initiative. 

8.  Why  is  it  necessary  to  help  the  voters  in  the  work  of  Direct 

Legislation? 

9.  Describe  the  printing,  and  distribution  to  the  voters  of  Oregon, 

of  literature  on  measures  to  be  submitted  to  them. 

10.  Who  bears   the  cost  of  printing,   binding,   and   distributing   this 

literature? 

11.  When  is  this  literature  distributed? 

12.  What  officers  are  subject  to  recall  in  Arizona? 

13.  What  is  the  nature  of  the  Recall  Petition  in  Arizona? 

14.  Describe  a  Recall  Election  in  Arizona. 

15.  What   limitations   does   the   constitution   of   Arizona   place   upon 

the  use  of  the  Recall  in  that  state? 

16.  Describe  the  use  of  the   Recall  in   Charlotte,  North  Carolina,  in 

1919. 

17.  What  is  meant  by  saying  that   the  Initiative,   Referendum  and 

Recall  may  be  more  valuable  in  their  existence  than  in  their 
use? 

18.  Give  some  examples  of  the   use   of  these   measures  of  popular 

control  in  various   states. 

19.  What  is  Dr.  Taylor's   conclusion  as  to  the  facts  brought  out  in 

this  review? 


CHAPTER  XXXVIII 

PUBLIC    OPINION 

225.   The  origin  of  our  personal  opinions  ^ 

It  is  a  trite  but  significant  statement  that  the  conduct  of  the  citizen   Our  actions 

in  the  affairs  of  private  and  public  life  will  be  determined  largely  bv   ('"^f'^'y    , 

°    ■'      ■>     intluenccfi 

the  beliefs  and  opinions  which  he  holds.  The  nature  of  these  beliefs  by  personal 
and  opinions  will  depend  upon  his  early  environment,  his  training,  "'^'^'^f^  ^'^ 
the  type  of  persons  and  institutions  with  which  he  comes  in  contact, 
and  his  habits  as  an  independent  thinker.  Because  of  the  domina- 
tion of  opinion  over  the  actions  of  the  individual,  it  becomes  neces- 
sary to  inquire  into  the  means  by  which  we  acquire  our  personal 
opinions.  This  question  is  discussed  by  President  Lowell  in  the  fol- 
lowing passage: 

We  are  constantly  told  to-day  how  small  a  part  of  our  actions  are  Many  of 
the  result  of  our  own  reasoning,  how  small  a  proportion  of  opinion  """^  opinions 
is  personal,  how  much  of  it  is  taken  from  others  in  whole  or  in  part  from  others, 
ready-made. 

The  history  of  religious  bodies  shows  that  with  the  vast  majority  Some 
of  men  creeds  are  inherited;  or,  to  speak  more  strictly,  accepted  on 
the  suggestion  and  authority  of  parents  and  teachers.  It  is  incredible 
that  if  ever^'one  really  thought  out  his  beliefs  for  himself  religious 
lines  would  remain  from  generation  to  generation  so  little  changed 
as  they  have,  for  example,  among  the  Catholics  and  Protestants 
in  Switzerland.  ...  In  fact  it  would  be  safe  to  assert  as  a  general 
rule  that  the  members  of  every  church  have  accepted  its  dogmas 
because  they  belonged  to  it,  quite  as  much  as  they  have  clung  to  the 
church  on  account  of  a  belief  in  its  creed.  Nor  is  this  less  true  of  other 
spheres  of  thought.    It  is  manifestly  the  case  in  politics,  where  parly 

'  From  A.  Lawrence  Lowell,  PMk  Opinion  and  Popular  Government.    Longmans, 
Green  and  Co.,  New  York,  1913;  pp.  16-18,  22-24. 

S17 


illustrations. 


5i8 


READINGS  IN  AMERICAN  DEMOCRACY 


We  often 
act  upon 
suggestions 
without 
being  aware 
of  their 
origin. 


The  origin 
of  our 
beliefs  as  to 
fundamental 
political 
principles. 


But  some 
opinions 
require  a 
personal 
judgment 
of  facts. 


affiliations  have  no  less  influence  in  fixing  the  principles  of  men,  than 
the  principles  have  in  determining  the  membership  of  the  parties. 

Opinions  may,  of  course,  be  adopted  by  conscious  submission  to 
the  authority  of  someone  who  is  better  informed;  and  Sir  George 
Cornewall  Lewis  points  out  that  in  such  a  case  "The  choice  of  a  guide 
is  as  much  a  matter  of  free  determination,  as  the  adoption  of  an  opinion 
on  argumentative  grounds."  But  he  does  not  appear  to  have  per- 
ceived to  how  small  an  extent  the  selection  of  a  guide  is  in  fact 
deliberate  or  even  conscious.  In  most  of  the  affairs  of  life  we  are 
constantly  acting  upon  suggestions  without  being  aware  of  their 
origin,  or  indeed  of  the  fact  that  we  did  not  frame  our  conclusions 
unaided.  .  .  . 

A  belief,  although  adopted  on  suggestion  or  authority  without 
mature  consideration,  may  nevertheless  be  a  real  opinion  and  not  a 
mere  prejudice  or  meaningless  impression;  for  the  line  between  what 
is  opinion  and  what  is  not  is  by  no  means  the  same  as  the  line  between 
what  is  personally  thought  out,  or  consciously  rational,  and  what 
comes  in  other  ways.  The  bulk  of  every  community  accepts  without 
adequate  reasoning  all  its  fundamental  political  principles,  such  as 
a  behef  in  monarchy  or  in  a  federal  system  of  government,  in  uni- 
versal suffrage,  in  trial  by  jury,  and  in  many  other  things  that  the 
people  of  a  country  habitually  assume  as  axioms.  .  .  . 

A  conviction,  therefore,  formed  because  it  is  in  accord  with  a  code 
of  beliefs  already  in  the  mind  is  properly  classed  as  an  opinion; 
but  many  of  the  problems  that  arise  in  politics,  as  in  the  other  affairs 
of  life,  cannot  be  solved  in  this  way.  They  do  not  present  a  question 
of  harmony  with  accepted  principles,  but  the  application  of  an 
accepted  principle  to  a  particular  case,  or  the  means  to  be  adopted 
in  attaining  an  end  universally  desired;  and  these  things  usually 
require  for  their  determination  a  considerable  knowledge  of  the  sub- 
ject matter.  .  .  ;  [For  example,]  it  is  generally  admitted  that  chil- 
dren should  be  educated  for  their  duties  in  life  at  the  public  expense. 
To  what  extent  are  the  studies  leading  to  a  general  education  and 
to  what  extent  are  manual  and  industrial  training  best  adapted  to  that 
end?  On  problems  of  this  kind  an  opinion  worthy  of  the  name  can- 
not be  formed  without  both  a  process  of  reasoning  and,  what  is  far 
more  difficult,  the  command  of  a  number  of  facts.  .  .  . 


PUBLIC  OPINION  51Q 

In  order,  therefore,  that  there  may  be  a  real  Public  Opinion  on  any  Conditions 

subject,  not  involving  a  simple  question  of  harmony  or  contradiction  ["'"^^'^^^^j 

with  settled  convictions,  the  bulk  of  the  people  must  be  in  a  position  Puhiic 

to  determine  of  their  own  knowledge,  or  by  weighing  evidence,  a  ^P""'"°- 
substantial  part  of  the  facts  required  for  a  rational  decision. 

226.   The  importance  of  talk^ 

In  order  that  individuals  may  acquire  ideas  from  one  another,  Social 

or  influence  the  judgments  of  one  another,  it  is  necessary  that  they   ™"'^^'^ 

■•      °  '  ...         necessary  to 

come  into  social  contact.     So  far  as  the  formation  of  public  opinion   the  forma- 
is  concerned,  this  social  contact  is  mainly  through  the  medium  of   p"?,-" 
talking  or  writing.    A  cornerstone  of  self-government  is  freedom  of   Opinion, 
assemblage,  of  speech,  and  of  the  press,    for  neither  self-govern- 
ment nor  the  formation  of  sound  Public  Opinion  is  possible  unless 
people  are  allowed  to  talk.    The  importance  of  talk  is  developed  in 
the  following  passage  by  Edwin  Lawrence  Godkin: 

[^The]  extension  of  the  powers  and  functions  of  government  makes  Importance 
more  necessary  than  ever  a  free  expression  of  opinion,  and  especially  °  ^^ess^Qn 
of  educated  opinion.    We  may  rail  at  "mere  talk"  as  much  as  we  of  opinion, 
please,  but  the  probability  is  that  the  affairs  of  nations  and  of  men 
will  be  more  and  more  regulated  by  talk. 

The  amount  of  talk  which  is  expended  on  all  subjects  of  human  Volume  of 
interest  —  and  in  "talk"  I  include  contributions  to  periodical  litcra-   ^'J.^.^^^^ 
ture  —  is  something  of  which  a  previous  age  has  had  the  smallest   time, 
conception.    Of  course  it  varies  infinitely  in  quality.     A  very  large 
proportion  of  it  does  no  good  beyond  relieving  the  feelings  of  the 
talker.    Political  philosophers  maintain,  and  with  good  reason,  that 
one  of  its  greatest  uses  is  keeping  down  discontent  under  popular 
government.  It  is  undoubtedly  true  that  it  is  an  immense  relief  to  a 
man  with  a  grievance  to  express  his  feelings  about  it  in  words,  even 
if  he  knows  that  his  words  will  have  no  immediate  effect.    Self-love 
is  apt  to  prevent  most  men  from  thinking  that  anything  they  say 
with  passion  or  earnestness  will  utterly  and  finally  fail.     But  still 
it  is  safe  to  suppose  that  one-half  of  the  talk  of  the  world  on  subjects 
of  general  interest  is  waste. 

»  From  Edwin   Lawrence   Godkin,   Problems  of  Modern  Democracy.     Charles 
Scribner's  Sons,  New  York,  1896;  pp.  221-224. 


20 


READINGS  IN  AMERICAN  DEMOCRACY 


Probably 
one  half  of 
the  talk 
of  the  world 
is  wasted, 
but  the  other 
half  counts. 


Some 
examples. 


Everything 
that  is  said 
has  some 
effect. 


But  the  other  half  certainly  tells.  We  know  this  from  the  change 
in  ideas  from  generation  to  generation.  We  see  that  opinions  which 
at  one  time  everybody  held  became  absurd  in  the  course  of  half  a 
century  —  opinions  about  reUgion  and  morals  and  manners  and 
government.  Nearly  every  man  of  my  age  can  recall  old  opinions 
of  his  own,  on  subjects  of  general  interest,  which  he  once  thought 
highly  respectable,  and  which  he  is  now  ashamed  of  having  ever 
held.  He  does  not  remember  when  he  changed  them,  or  why,  but 
somehow  they  have  passed  away  from  him. 

In  communities  these  changes  are  often  very  striking.  The  trans- 
formation, for  instance,  of  the  England  of  Cromwell  into  the  England 
of  Queen  Anne,  or  of  the  New  England  of  Cotton  Mather  into  the  New 
England  of  Theodore  Parker  and  Emerson,  was  very  extraordinary, 
but  it  would  be  very  difficult  to  say  in  detail  what  brought  it  about, 
or  when  it  began.  Lecky  has  some  curious  observations,  in  his 
History  of  Rationalism  on  these  silent  changes  in  new  beliefs  apropos 
of  the  disappearance  of  the  belief  in  witchcraft.  Nobody  could 
say  what  had  swept  it  away,  but  it  appeared  that  in  a  certain 
year  people  were  ready  to  bum  old  women  as  witches,  and  a  few 
years  later  were  ready  to  laugh  at  or  pity  any  one  who  thought  old 
women  could  be  witches.  .  .  . 

The  belief  in  witchcraft  may  perhaps  be  considered  a  somewhat 
violent  illustration,  like  the  change  in  public  opinion  about  slavery 
in  this  country.  But  there  can  be  no  doubt  that  it  is  talk  —  some- 
body's, anybody's,  everybody's  talk  —  by  which  these  changes  are 
wrought,  by  which  each  generation  comes  to  feel  and  think  differently 
from  its  predecessor.  No  one  ever  talks  freely  about  anything  with- 
out contributing  something,  let  it  be  ever  so  little,  to  the  unseen  forces 
which  carry  the  race  on  to  its  final  destiny.  Even  if  he  does  not  make 
a  positive  impression,  he  counteracts  or  modifies  some  other  impres- 
sion, or  sets  in  some  train  of  ideas  in  some  one  else,  which  helps  to 
change  the  face  of  the  world  So  I  shall,  in  disregard  of  the  great 
laudation  of  silence  which  filled  the  earth  in  the  days  of  Carlyle,  say 
that  one  of  the  functions  of  an  educated  man  is  to  talk,  and,  of  course, 
he  should  try  to  talk  wisely. 


PUBLIC   OPINION  521 

227.   The  influence  of  the  leader  ' 

Where  individuals  habitually  come   in  contact  with  one  another.   The  influ- 
there  is  a  constant  stream  of  talk.    Ideas  are  interchanged,  questions   *:^^^  "li™"^ 
are  asked  and  answered,  there  are  attempts  at  persuasion  and  resist-   intercourse 
ance,  accusations  are  made  and  denunciations  are  returned.     But   ^'^"*-"*- 
in  this  complex  of  social  intercourse,  all  men  are  not  ahke.    Some  say 
Uttle  and  think  less;   some  are  timid,  others  are  aggressive  and  vol- 
uble.   And  though  communities  vary,  there  is  everywhere  a  tendency 
among  men  to  be  dominated  by  natural  leaders,  to  follow  the  strong,   The  leader, 
the  self-assured,  and  the  aggressive.     Leadership  is  an  important 
factor  in  the  formation  of  Public  Opinion,  as  Professor  Cooley  points 
out  in  the  following  selection: 

If  we  ask  what  are  the  mental  traits  that  distinguish  a  leader,   A  leader 
the  only  answer  seems  to  be  that  he  must,  in  one  way  or  another,   ^"^^  ^^ 
be  a  great  deal  of  a  man,  or  at  least  appear  to  be.    He  must  stand  for  of  a  man. 
something  to  which  men  incline,  and  so  take  his  place  by  right  as  a 
focus  of  their  thought. 

Evidently  he  must  be  the  best  of  his  kind  available.    It  is  impos-  He  must  be 
sible  that  he  should  stand  forth  as  an  archetype,  unless  he  is  con-   ^ffij^^tj^.e, 
ceived  as  superior,  in  some  respect,  to  all  others  within  range  of  the   and  superior, 
imagination.    Nothing  that  is  seen  to  be  second-rate  can  be  an  ideal; 
if  a  character  does  not  bound  the  horizon  at  some  point  we  will  look 
over  it  to  what  we  can  see  beyond.    The  object  of  admiration  may  be 
Caesar  Borgia,  or  Napoleon,  or  Jesse  James  the  train-robber,  but  he 
must  be  typical,  must  stand  for  something.    No  matter  how  bad  the 
leader  may  be,  he  will  always  be  found  to  owe  his  leadership  to  some- 
thing strong,  afhrmative,  and  superior,  something  that  appeals  to 
onward  instinct. 

To  be  a  great  deal  of  a  man,  and  hence  a  leader,  involves,  on  the  The  leader 
one  hand,  a  significant  individuality,  and,  on  the  other,  breadth  of   ""^    ^ 
sympathy,  the  two  being  different  phases  of  personal  calibre,  rather 
than  separate  traits. 

It  is  because  a  man  cannot  stand  for  anything  except  as  he  has  a   self-rcUance. 
significant  individuahty,  that  self-rehance  is  so  essential  a  trait  in 
leadership:    except  as  a  person  trusts  and  cherishes  his  own  special 

1  From  Charles  Horton  Cooley,  Human  Nature  attd  the  Social  Order.     Charles 
Scribner's  Sons,  New  York,  1902;   pp.  293-297.  3 10. 


522 


READINGS  IN  AMERICAN  DEMOCRACY 


and  breadth 
of  sympathy. 


Qualities 
of  a  man 
who  can 
dominate 
the  minds 
of  others 
in  a  crisis. 


The  first 
requisite 
of  a  leader 
is,  not  to  be 
right,  but 
to  show 
the  way. 


tendency,  different  from  that  of  other  people  and  usually  opposed 
by  them  in  its  inception,  he  can  never  develop  anything  of  peculiar 
value.  He  has  to  free  himself  from  the  domination  of  purposes  already 
defined  and  urged  upon  him  by  others,  and  bring  up  something  fresh 
out  of  the  vague  underworld  of  subconsciousness;  and  this  means 
an  intense  self,  a  militant,  gloating  "I."  Emerson's  essay  on  self- 
reliance  only  formulates  what  has  always  been  the  creed  of  significant 
persons. 

On  the  other  hand,  success  in  unfolding  a  special  tendency  and 
giving  vogue  to  it,  depends  upon  being  in  touch,  through  sympathy, 
with  the  current  of  human  life.  All  leadership  takes  place  through  the 
communication  of  ideas  to  the  minds  of  others,  and  unless  the  ideas 
are  so  presented  as  to  be  congenial  to  those  other  minds,  they  will 
evidently  be  rejected.  It  is  because  the  novelty  is  not  alien  to  us, 
but  is  seen  to  ourself  in  a  fresh  guise,  that  we  welcome  it.  .  .  . 

The  man  of  action  who,  like  Napoleon,  can  dominate  the  minds  of 
others  in  a  crisis,  must  have  the  general  traits  of  leadership  developed 
with  special  reference  to  the  promptness  of  their  action.  His  individ- 
ual significance  must  take  the  form  of  a  palpable  decision  and  self- 
confidence;  and  breadth  of  sympathy  becomes  a  quick  tact  to  grasp 
the  mental  state  of  those  with  whom  he  deals,  so  that  he  may  know 
how  to  plant  the  dominating  suggestion.  Into  the  vagueness  and 
confusion  that  most  of  us  feel  in  the  face  of  a  strange  situation,  such 
a  man  injects  a  clear-cut  idea.  There  is  a  definiteness  about  him  which 
makes  us  feel  that  he  will  not  leave  us  drifting,  but  will  set  a  course, 
will  substitute  action  for  doubt,  and  give  our  energies  an  outlet. 
Again,  his  aggressive  confidence  is  transmitted  by  suggestion,  and 
acts  directly  upon  our  minds  as  a  sanction  of  his  leadership.  And 
if  he  adds  to  this  the  tact  to  awaken  no  opposition,  to  make  us  feel 
that  he  is  of  our  sort,  that  his  suggestions  are  quite  in  our  Une,  in  a 
word  that  we  are  safe  in  his  hands;   he  can  hardly  be  resisted.  .  .  . 

Another  phase  of  the  same  truth  is  the  ascendancy  that  persons  of 
belief  and  hope  always  exercise  as  against  those  who  may  be  superior 
in  every  other  respect,  but  who  lack  these  traits.  The  onward  and 
aggressive  portion  of  the  world,  the  people  who  do  things,  the  young 
and  all  having  surplus  energy,  need  to  hope  and  strive  for  an  imagi- 
native object,  and  they  will  follow  no  one  who  does  not  encourage 


PUBLIC   OPINION  523 

this  tendency.  The  first  requisite  of  a  leader  is,  not  to  be  right,  but 
to  lead,  to  show  a  way.  The  idealist's  programme  of  political  or 
economic  reform  may  be  impracticable,  absurd,  demonstrably  ridicu- 
lous; but  it  can  never  be  successfully  opposed  merely  by  pointing  out 
that  this  is  the  case.  A  negative  opposition  cannot  be  wholy  effectual : 
there  must  be  a  competing  idealism;  something  must  be  offered 
that  is  not  only  less  objectionable  but  more  desirable,  that  affords 
occupation  to  progressive  instinct. 

228.   The  merits  of  PubUc  Opinion' 

Public  Opinion  is  admittedly  a  powerful  and  pervading  influence.   "^^  merits 
If  we  go  beyond  this  general  statement,  however,  we  come  to  a  some-  of  Pufjijc 

what  complicated  situation.    Public  Opinion  is  powerful,  but  some-   Opinion  as  a 

.      ,        1       •    •  r     1  •        •  If.        means  of 

tunes  It  reacts  to  the  mjury  of  the  community  instead  of  to  its  ^^^^ 

benefit.     Public  Opinion  has  important  merits;   on  the  other  hand,   control. 

it  has  serious  defects.    Let  us  begin  a  brief  analysis  of  the  subject 

by  seeing  what  are  the  substantial  merits  of  Public  Opinion.    These   Its  merits: 

Lord  Br>^ce  outlines  as  follows: 

Now  let  us  .  .  .  compare  the  influence  upon  the  conduct  of  public   The  action 

affairs  which  is  called,  somewhat  loosely,  the  rule  of  Public  Opinion,   °  .  V   "; 

'  ■'  .  Opinion  IS 

with  the  direct  control  exerted  by  the  citizens  when  they  vote  either  continuous, 

on  a  question  submitted  (Referendum)   or  for  a  candidate.     The        \ 

^  _  _  voting 

action  of  opinion  is  continuous,  that  of  voting  occasional,  and  in  the   occasional. 

intervals  between  the  elections  of  legislative  bodies  changes  may  take 

place  materially  affecting  the  views  of  the  voters.  ...  At  elections 

it  is  for  a  candidate  that  votes  are  given,  and  as  his  personality  or 

his  local  influence  may  count  for  more  than  his  principles,  the  choice 

of  one  man  against  another  is  an  imperfect  way  of  expressing  the 

mind  of  a  constituency.  .  .  . 

The  result  of  an  election  may  be  determined  by  the  action  of  an 
insignificant  knot  of  voters  specially  interested  in  a  question  of  slight 
importance.  Anti-vaccinationists,  or  a  few  dozens  of  government 
employees  demanding  higher  wages,  have  thus  turned  elections  in 
English  boroughs  where  parties  were  of  nearly  equal  strength.  .  .  . 

•  From  James  Br>'ce,  Modern  Democracies.  The  Macmillan  Company,  New 
York,  1921.    Vol.  I,  pp.  158-161. 


5^4 


READINGS  IN  AMERICAN  DEMOCRACY 


The  merits 
of  Public 
Opinion 
summed  up. 


Public 
Opinion 
contrasted 
with  voting 
in  these 
respects. 


The  relation 
of  Public 
Opinion  to 
voting. 


A  large  percentage  of  the  votes  are  given  with  little  reference  to  the 
main  issues  involved.  It  is  the  business  of  the  managers  to  "froth 
up"  party  feeUng  and  make  excitement  do  the  work  of  reason. 

In  all  the  points  just  enumerated  Public  Opinion,  when  and  in  so 
far  as  it  can  be  ehcited,  is  an  organ  or  method  through  which  the 
people  can  exert  their  power  more  elastic  and  less  pervertible  than 
is  the  method  of  voting.  It  is  always  operative;  its  action  changes 
as  the  facts  of  the  case  change  and  keeps  pace  with  them.  It  sets  the 
larger  and  the  smaller  issues  in  their  true  perspective.  It  reduces 
petty  "fads"  or  selfish  groups  to  insignificance.  It  reUes,  not  on 
organization  and  party  drill,  but  on  the  good  sense  and  fairness  of 
the  citizens  as  a  whole.  It  expresses  what  is  more  or  less  thought  and 
felt  in  all  the  parties  by  their  more  temperate  and  unbiased  members. 
It  is  a  counterpoise  to  the  power  of  mere  numbers. 

At  a  poU  one  vote  is  as  good  as  another,  the  ignorant  and  unre- 
flecting counting  for  as  much  as  the  well-informed  and  wise,  but  in 
the  formation  of  opinion  knowledge  and  thought  tell.  The  clash 
and  conflict  of  argument  bring  out  the  strength  and  weakness  of  every 
case,  and  that  which  is  sound  tends  to  prevail.  Let  the  cynics  say 
what  they  will,  man  is  not  an  irrational  animal.  Truth  usually  wins 
in  the  long  run,  though  the  obsessions  of  self-interest  or  prejudice 
or  ignorance  may  long  delay  its  victory.  .  .  .  Voting,  though  indis- 
pensable as  a  means  of  determining  the  view  of  the  majority,  is  a 
mechanical  operation,  necessarily  surrounded  with  legal  forms,  while 
in  the  formation  and  expression  of  opinion  the  essential  spirit  of 
democracy  rises  above  the  machinery  and  the  trammels  which  machin- 
ery imposes,  and  finds  a  means  of  applying  its  force  more  flexible, 
more  delicate,  more  conciliatory  and  persuasive  than  is  a  decision 
given  by  the  counting  of  votes. 

Voting,  I  repeat,  is  indispensable,  for  it  is  positive,  giving  an  incon- 
trovertible result.  But  voting  is  serviceable  just  in  proportion  as 
it  has  been  preceded  and  prepared  by  the  action  of  PubUc  Opinion, 
The  discussion  which  forms  opinion  by  securing  the  due  expression 
of  each  view  or  set  of  views  so  that  the  sounder  may  prevail  enables 
the  citizens  who  wish  to  find  the  truth  and  follow  it  to  deliver  a  con- 
sidered vote.  It  is  an  educative  process  constantly  in  progress. 
In  the  intervals  between  elections  it  imposes  some  check  on  the  vehe- 


PUBLIC  OPINION  525 

mence  of  party  spirit  and  the  recklessness  or  want  of  scruple  of  party 
leaders,  and  restrains  the  disposition  of  party  government  to  abuse 
its  power.  When  a  ministry  or  legislature  feels  the  tide  of  opinion 
beginning  to  run  against  some  of  their  purposes  they  pause.  .  .  . 
Many  a  plan  has  been  abandoned  without  any  formal  declaration  of 
popular  disapproval  because  disapproval  was  felt  to  be  in  the  air. 


229.   The  defects  of  Public  Opinion  ' 

In  the  above  selection  the  merits  of  Public  Opinion  are  set  forth   Professor. 
by  one  of  the  most  able  statesmen  of  the  present  generation.     In   ,1°*^?/*^ 
comparing  the  ballot  with  Public  Opinion  he  concludes  that  as  a   of  Public 
form  of  social  control  the  latter  has   many  advantages  over   the      P"^'°"- 
former.      Let  us  notice,  now,  that  as  a  form  of  social  control  Public 
Opinion  is  in  several  important  respects  inferior  to  law.      Professor 
Ross  discusses  the  defects  of  Public  Opinion  as  follows: 

[The  penalties  which  PubUc  Opinion  imposes  for  mis-conduct]  The  penal- 
are  not  definite,  and  not  proportioned  to  the  gravity  of  the  offence,   by^puij,^,- 
No  member  of  the  public  knows  just  how  much  praise  or  blame.   Opinion  are 
warmth  or  chill,  others  are  applying.     Moreover,  systematic  inquisi-   ^^!}-[„i"^  ^q^ 
tion  into  guilt  or  merit,  with  observance  of  the  rules  of  evidence   proportioned 
and  due  deliberation,  is  impossible  with  the  public,  for  it  does  not     ^^^.-^^y  ^f 
function  as  does  a  court.    It  merely  reacts.    From  this  fact  arise  the   the  offense, 
many  injustices  and  mistakes  which  weaken  the  authority  of  Public 
Opinion. 

Again,  to  utilize  the  temper  of  the  community,  it  is  necessary  The  public 
to  strike  while  the  iron  is  hot.    The  ministers  of  the  law,  if  they  have   J^^  ^^^^ 
a  slow  foot,  have  a  firm  clutch  and,  like  the  gods,  are  known  by  their  a  poor 
long  memories.    But  the  public  has  a  short  vvTath  and  a  poor  memory',   ^'^^°'^- 
and  the  offender,  if  he  dodges  into  obscurity,  and  waits  till  the  gust 
of  public  indignation  is  over,  often  goes  unpunished. 

As  there  is  only  one  law  in  force  at  any  one  time,  there  can  be  no   It  is  rarely 
clashing  of  jurisdictions.     But  the  pubUc  is  rarely  unanimous,  and 
Public  Opinion  often  clashes  with  the  sentiment  of  a  sect,  party,  or 
class.    In  a  homogeneous  community,  people  are  able  to  feel  and  think 

1  From  Edward  Alsworth  Ross,   Social  Control.     The  MacmUlan  Company, 
New  York,  ig2i;  pp.  96-97,  99-101- 


unanimous. 


526 


READINGS  IN  AMERICAN  DEMOCRACY 


rhe  result. 


Public 
Opinion  is 
X)werless 
ivhen  the 
•esponsibility 
or  an  act 
annot  be 
ocalized. 


rhe  public 
5  moved 
ind  influ- 
enced by 
nstincts 
vhich 
annot  be 
rusted  to 
:uide  or 
ontrol 
nodem 
odety. 


alike  in  all  important  cases,  and  hence  Public  Opinion  is  effective; 
but  in  a  stratified  community,  the  separation  of  classes  hinders  an 
easy  conduction  of  feehng.  Here,  then,  an  offender  escapes  the  lower- 
ing glances  and  bitter  words  of  his  fellows  by  taking  refuge  in  circles 
where  his  fault  is  condoned.  The  bruiser  dives  into  the  sporting 
class,  the  duellist  haunts  the  mess-room,  the  ballot  sharp  takes  refuge 
with  his  poUtical  friends,  the  snob  shuts  himself  away  from  popular 
derision  in  a  social  club.  This  right  of  asylum  with  complaisant  coteries 
is  a  very  grave  thing,  for  it  often  transforms  an  act  of  punishment 
into  a  class  war,  and  rends  the  community  in  twain.  .  .  . 

The  might  of  pubUc  wrafh  is  destroyed  by  anything  that  diverts 
it  from  an  individual  and  spreads  Lt  harmlessly  over  a  network  of 
administrative  responsibiUty.  The  common  indignation,  always  con- 
fused by  a  shifting  responsibility,  is  most  baffled  when  responsibility 
on  being  traced  back  is  found  to  be  lodged  in  a  body  of  men.  It  is 
this  fact  that  accounts  for  the  increasing  disregard  of  Public  Opinion 
in  the  management  of  business.  Corporate  organization  opposes 
to  pubhc  fury  a  cuirass  of  divided  responsibility  that  conveys  away 
harmlessly  a  shock  that  might  have  stretched  iniquity  prone.  .  .  . 
In  such  cases  public  indignation  must  be  given  an  arm  to  strike  and 
hurt  with,  if  it  is  not  to  become  mere  impotent  rage.  [This  truth  is 
overlooked  by  those  who]  ignorantly  extol  the  might  of  Public 
Opinion  in  all  cases  whatsoever.  .  .  . 

While  the  irascible  instincts  were  given  to  man  to  fit  him  for  the 
struggle  for  existence  as  it  was  ages  ago,  nothing  is  surer  than  that 
to-day  they  are  utterly  unsafe  to  follow.  .  .  .  The  first  impulsive 
reactions  of  the  public  have  almost  nothing  to  do  with  social  wel- 
fare. It  does  not  like  unselfish  devotion  nor  does  it  detest  brazen 
egotism.  High  on  the  crest  of  popular  idolatry,  the  jockey,  the 
bruiser,  and  the  soubrette  share  the  honors  with  the  soldier,  the 
patriot,  and  the  philanthropist.  The  public  is  enraged  at  vivisection 
or  grave-robbing.  It  is  flaccid  before  bribery,  breaking  quarantine, 
the  adulteration  of  drugs,  or  the  plugging  of  armor  plate.  People 
react  most  against  that  which  shocks  their  instincts,  ...  but  these 
offences  being  contrary  to  deep-seated  instincts  are  just  those  which 
are  least  liable  to  spread  and  threaten  the  life  of  society.  Light 
shines  first  on  the  few,  and  the  public  is  the  last  to  apprehend  the 


PUBLIC   OPINION  527 

real  bearing  and  ultimate  results  of  conduct.  The  handful  of  thought- 
ful men  penalize  forest-firing  and  the  selling  of  explosive  oil,  and  the 
killing  of  game  out  of  season,  while  yet  the  senseless  mob  is  gnashing 
its  teeth  at  vaccinators  and  body  snatchers.  .  .  . 

In   certain  directions  .  .  .  unenlightened  Public  Opinion  pushes    UncnliRht- 

regulation  to  excess.     It  is  possible  for  the  vague  feelings  against   '^"'^  '""'^'''^ 

,  ,     .  ,  00  Opinion 

vegetarianism,  or  long  hair,  or  "bloomers,"  or  non-church-going,   may  push 

to  run  together  into  a  hostile  and  imperious  public  sentiment.     It   ""f^K^'^t'o" 

is  but  a  step  from  the  image-breaker's  hatred  of  stained  glass,  the  point  of 

Scotch  Calvinist's  contempt  for  a  violin,  the  rabble's  resentment    Persecution. 

of  a  silk  hat,  or  the  frontiersman's  detestation  of  a  "biled"  shirt, 

to  a  persecution  that  is  as  senseless  as  it  is  abominable.     To  the 

ignorant,  unlikeness  is  an  affront,  nonconformity  an  outrage,  and 

innovation  a  crime.     Give  full  play  to  this  feeling,  and  you  have 

the  intolerant  multitude,  eager  to  stretch  every  one  on  its  Procrustean 

bed.     It  was  the  majority  that  stoned  Stephen,  banished  Aristides, 

poisoned  Socrates,  mobbed  Priestley,  and  beat  Garrison.  .  .  . 


230.   The  improvement  of  Public  Opinion  ^ 

Three  points  have  been  brought  out  in  the  two  foregoing  selections:  The 

first,  that  Public  Opinion  is  a  powerful  force,  second,  that  it  has  its   P"".^^"" 

'  jr-  f  '  yf^^Y^  respect 

merits,  and  third,  its  defects.  The  constructive  student  should  react  to  Public 
to  this  situation  by  sanctioning  a  program  which  will  serve  to  retain  ^P""'*'^- 
and  to  enlarge  the  merits  of  the  Public  Opinion,  remove  or  mitigate  its 
defects,  and,  in  short,  direct  its  power  into  channels  which  will  be  pro- 
ductive and  helpful.  The  improvement  of  Public  Opinion  may  come 
about  in  many  ways,  but  fundamentally,  perhaps,  it  depends  upon 
education.  The  importance  of  the  educative  process  in  this  regard 
is  developed  by  Professors  Blackmar  and  Gillin  in  the  following 
passage: 

Inasmuch  as  social  order  has  been  developed  by  slow  degrees.    Importance 
control  by  force  has,  at  times,  been  necessary  as  a  temporar\'  check   ?^  ^^  "^° 
upon  insubordination;  but  it  is  always  soon  replaced  by  other  agencies,   control. 
Gradually  the  idea  has  grown  that  other  forms  of  control  are  cheaper 

From  Frank  W.  Blackmar  and  John  Lewis  Gillin,  Outlines  of  Sociology.    The 
Macmillan  Company,  New  York,  igis;   PP-  393-397- 


528 


READINGS  IN  AMERICAN  DEMOCRACY 


The  fuU 

expression 
of  Public 
Opinion 
dejaends 
upon  the 
diffusion 
of  general 
intelligence. 


Effect  of 
education 
upon  the 
improve- 
ment of 
govenmient. 


Self-govern- 
ment calls 
for  an 
educated 
people. 


and  more  easily  administered;  and  gradually  other  methods  have 
become  the  usual  ones.  Since,  however,  the  conscious  effort  of  society 
to  govern  itself  demands  a  recognition  of  the  laws  of  social  develop- 
ment and  requires,  among  the  component  members  of  society,  some 
ability  to  control  themselves  in  the  interests  of  the  group,  society 
cannot  do  better  than  to  adopt  the  educational  method  as  a  means 
of  establishing  that  high  degree  of  intelligence  necessary  for  democratic 
social  control.  .  .  . 

If  the  general  inteUigence  is  low,  Public  Opinion  will,  of  necessity, 
be  wrong  in  its  premises;  and  the  type  of  political  and  social  life 
which  develops  will  then  be  undemocratic.  It  is,  of  course,  possible 
for  a  community  to  maintain  order  on  a  low  standard  of  social  re- 
sponsibility; but  only  that  society  will  be  progressive  and  self -con- 
trolled in  which  Public  Opinion  is  permeated  with  social  idealism. 
And  notwithstanding  that,  in  any  community.  Public  Opinion  may 
sometimes  be  created  by  a  few  of  the  more  intelligent,  the  fact  remains 
that  unless  the  majority  has  sufficient  intelligence  to  understand  the 
ideas  of  the  leaders  and  make  them  their  own,  society  will  be  con- 
trolled, not  by  Public  Opinion,  but  by  the  opinions  of  a  dominant 
few.  For  it  is  only  when  the  members  are  in  intelligent  and  har- 
monious sympathy  with  one  another  that  Public  Opinion  can  receive 
fuU  expression  —  a  condition  involving  not  only  individual  capacity, 
but  the  perfection  of  social  machinery  as  well. 

As  education  grows  more  and  more  general,  the  critical  faculty  of 
individuals,  becoming  stimulated,  gradually  raises  the  governmental 
ideal.  But  the  development  is,  indeed,  gradual;  for  even  when  people 
have  determined  what  is  right,  they  sometimes  find  it  very  difficult 
so  to  perfect  the  machinery  of  legislation  and  justice  as  to  carry  out 
their  ideals.  As  a  matter  of  fact,  there  is  nothing  in  human  experience 
that  requires  more  foresight,  ability,  and  harmonious  social  action 
than  does  the  creation  of  laws  for  the  government  of  a  free  people.  .  .  . 

Thus  the  state  that  is  to  be  perpetuated  through  self-government 
must  see  to  it  that  its  citizens  are  well  educated.  .  .  .  Beginning  in 
the  grammar  grades  and  continuing  with  increased  force  through  the 
high  school  and  the  university,  special  training  should  be  given  in  all 
the  subjects  that  pertain  to  social  order  and  social  control.  .  .  . 
Everjlhing  that  leads  to  an  acquaintance  with  the  poUtical  and  indus- 


PUBLIC  OPINION  529 

trial  history  of  the  nation,  with  its  social  and  economic  conditions, 
with  its  forms  of  government,  its  constitutional  and  common  law, 
and,  indeed,  with  its  social  relations,  should  be  taught  in  its  public 
schools. 

Yet  while  the  educating  process  should  begin  with  the  children  Extent  of 
and  continue  with  the  youth  of  the  country,  the  work  is  not  finished  .  ^^^' 
with  the  training  of  these.  And  although  discussion  of  public  questions  process, 
and  some  little  dissemination  of  information  is  secured  through  the 
press  and  the  platform,  these  agencies  are  really  inadequate  to  meet 
the  growing  need.  A  reaUzation  of  this  inadequacy  has  recently  led 
to  the  fruitful  suggestion  that  the  present  public  forum,  furnished  by 
newspapers,  books,  periodicals,  public  lectures  and  addresses,  be 
supplemented  by  neighborhood  gatherings  of  adults  in  the  community 
building,  the  schoolhouse,  for  the  discussion  of  questions  of  common 
interest.  The  suggestion  has  received  the  hearty  indorsement  of  men 
of  every  political  party  and  such  leading  educational  and  social 
bodies  as  the  National  Education  Association,  the  National  Federation 
of  Woman's  Clubs,  the  National  Municipal  League,  the  American 
Federation  of  Labor,  the  American  Prison  Congress,  and  three  of 
the  national  political  parties.  And  Wisconsin  has  already  placed 
upon  her  statute  books  a  law  requiring  that,  upon  the  request  of  a 
certain  number  of  citizens,  the  educational  authorities  shall  open  the 
doors  of  the  schoolhouses  for  just  such  purpose. 

In  carrying  out  this  project,  there  are,  of  course,  such  practical   The 
problems  to  be  met  as  that  of  gaining  a  sufficient  number  of  the  people   J^°^^|^^5 
of  a  community  to  take  an  interest  in  the  discussion  of  public  questions   the  scope 
and  that  of  centering  the  responsibiUty  for  requisite  leadership.  But   JJ^^'of" 
the  suggestion  is  certainly  most  significant  and  most  worthy  of  an   education 
honest  endeavor  to  make  the  public  school  more  effective  in  promoting   JJ,^°njended 
the  inteUigence  and  social  efficiency  of  that  ninety  odd  per  cent  of  our 
people  who  never  get  beyond  the  grammar  grades  of  our  schools. 
More  than  this,  special  technical  schools  preparatory  to  civil  service 
should  be  maintained  for  those  who  expect  to  make  government  their 
vocation;  for  if  a  state  provides  education  for  its  own  protection  and 
general  social  well-being,  and  neglects  the  training  of  its  officials,  it 
is  failing  to  use  the  best  means  it  has  for  conscious  development  and 
social  control. 


530  READINGS  IN  AMERICAN  DEMOCRACY 


Questions  on  the  foregoing  Readings 

1.  What  are  some  of  the  factors  which  influence  the  nature  of  our 

personal  beliefs  and  opinions? 

2.  How  do  most  men  come  by  their  religious  beliefs? 

3.  How  do  we  come  by  many  of  our  fundamental   political  beliefs? 

4.  What  type  of  opinions  require  a  personal  judgment  of  facts? 

5.  What,  according  to  President  Lowell,  are  the  conditions  necessary 

for  a  real  Tublic  Opinion? 

6.  What  is  the  relation  of  social  contact  to  Public  Opinion? 

7.  To  what  extent  does  "  talk  "  regulate  the  affairs  of  nations  and 

of  men? 

8.  What  proportion  of  talk  is  probably  wasted? 

9.  Illustrate  the  influence  of  talk  upon  beliefs  current  in  the  com- 

munity. 

10.  Explain  the  statement  that  everything  that  is  said  probably  has 

some  effect. 

11.  What  is  the  relation  of  leadership  to  Public  Opinion? 

12.  What  are  some  of  the  essential  qualities  of  the  leader? 

13.  Why    must   the   leader   not    only    be   self-reliant,    but   also   have 

breadth  of  sympathy? 
14-    Explain  what  is  meant  by  saying  that  the  first  requisite  of  a  leader 
is,  not  to  be  right,  but  to  lead,  to  show  a  way. 

15.  In  what  way  is  continuity  a  merit  of  Public  Opinion? 

16.  Give  the  merits  of  Public  Opinion,  as  summed  up  by  Lord  Bryce. 

17.  Explain  the  relation  of  Public  Opinion  to  voting. 

18.  What  does   Professor   Ross    mean  by  saying   that   one   defect  of 

Public  Opinion  is  that  it  is  not  definite? 

19.  Why  does  the  inability  of  the  public  to  be  unanimous  constitute 

a  defect?     Give  some  examples. 

20.  Explain  why  Public  Opinion  is  influenced  by  instincts  which  cannot 

be  trusted  to  guide  and  control  modern  society. 

21.  Give  some  examples  of  how  unenlightened  Public  Opinion  may 

push  regulation  to  the  point  of  persecution. 

22.  What  is  the  great  problem  with  respect  to  Public  Opinion? 

23.  What  is  the  relation  between  a  diffusion  of  general  intelligence 

and  the  full  expression  of  Public  Opinion? 

24.  Trace  the  growing  tendency  to  extend  the  scope  of  education. 
35.   What  is  the  conclusion  of   Professors  Blackmar  and   Gillin  with 

respect  to  the  value  of  this  tendency? 


INDEX 


Administration  (see  Slate  Adminis- 
tration) . 

Albany  plan  of  union,  32-34. 

Almshouse,  an  ideal,  329-331. 

America,  discovered  by  Colum- 
bus, 1-3. 

American  colonies,  combine  for  de- 
fense, 30  32;  and  the  Albany 
plan  of  union,  32-34. 

American   people,    occupations   of, 

79-83- 
American       Tobacco       Company, 

372-374- 

Americanization,  275-277. 

Andrews,  John  B.,  on  labor  ex- 
changes, 228-231. 

Arbitration,  failure  of  voluntary, 
239-242. 

Arizona,  education  in,  351-352; 
the   Recall   in,   510-512. 

Articles  of  Confederation,  selec- 
tion from,  34-37;  defects  of, 
38-39,  39-42- 

Ballot,  non-partisan,  473-475;  long, 
479-481;    short,  481-484. 

Bank  (see  Banking). 

Banking,  and  the  commercial  bank, 
418-419;  before  1913,  419-421; 
and  the  panic  of  1907,  421-423; 
and  the  Federal  Reserve  System, 
423-425,  425-427,  427-429  (see 
Federal  Reserve  System), 

Bill  of   Rights,   Virginia,   22-24. 

Bishop,    C.    F.,    on    the    suffrage, 

443-444- 
Black,  F.  R.,  on  industrial  relations, 
242-244. 


Blackmar  and  Gillin,  on  Public 
Opinion,  527-529. 

Boehm-Bawerk,  E.  von,  on  pro- 
duction, gi-93. 

Bogart,  E.  L.,  on  natural  resources, 
75-77- 

Bolshevism,  established  in  Russia, 
197-198;  suffrage  under,  198-200; 
dictatorship  of  the  proletariat, 
200-201;  propaganda  under,  202- 
203;  letter  on  failure  of,  203- 
205;  abandoned  for  capitalism, 
205-206     (see  Socialism). 

Boyle,  J.  E.,  on  marketing,  341-343- 

Bradford,  William,  on  the  Pilgrims, 
5-8- 

Brasol,  Boris  L.,  on  socialism, 
210-212. 

Bryce,  James,  on  the  political  party, 
457-459;      on     Public    Opinion, 

523-525- 

Budget,  need  of  a  Federal,  494- 
496;  essentials  of  a  good,  496- 
498. 

Bullock,  C.  J.,  on  rent,  123-124. 

Bush,  C.  H.,  on  contracts,  134-136. 

Business,  governmental  encourage- 
ment of,  83-85. 

California,  and  the  Japanese  prob- 
lem, 273-275. 

Calkins,  Ra>Tnond,  on  marriage, 
320-321. 

Campaign  contributions  (see  Polit- 
ical Party). 

Car\'er,  T.  N.,  on  distribution  since 
the  Industrial  Revolution,  121- 
123;    on  the  forms  of  comi>eti- 


531 


532 


INDEX 


tion,  136-138;  on  industrial  re- 
form, 223-224. 

Cariton,  F.  T.,  on  labor  legislation, 
231-232,  264-266. 

Charity  (see  Dependency). 

Check  and  balance  system,  53-55. 

Child  laborers,  standards  for,  255- 

257- 

City,  home  life  in  the,  311-313 

City  manager,  training  the,  500-502. 

Civil  Service  Act  of  1883,  463-465. 

Class  struggle,  1 79-181  {see  Social- 
ism). 

Clay,  Henry,  on  production,  141- 
142. 

Cleveland,  F.  A.,  on  the  budget, 
496-498. 

Collins,  C.  W.,  and  negro  suffrage, 

450-453- 
Colonies,   growth   of   the    English, 
11-13;    declare    their    independ- 
ence,    24-28.        (see     American 
Colonies). 
Colonial  manufacturers,   98-100. 
Colonists,  struggles  of  the,  9-1 1. 
Columbus,  discovers  America,  1-3. 
Commission  government,   498-500. 
Commons,  J.  R.,  on  the  division 

of   labor,   102-103. 
Communist     Manifesto,      177-179, 

179-181. 
Competition,  forms  of,   136-138. 
Conference  of  Governors,  on  con- 
servation,  405-407,   407-409. 
Connecticut,  settlement  of,   20;    a 

republic  established  in,  20-22. 
Conservation,  of  human  life,  253- 

255     (see  Natural  Resot<rces). 
Consolidated  school,  in  the  country, 

345-347. 
Constitution,  origin  of  the  Federal, 

42-43;     essentials    of    American 

government    under    the,    45-59; 

individual    rights   under,   45-46; 

states'     rights      under,      47-48; 


powers  of  the  Federal  government 
under,  48-51;  interpretation  of, 
51-53;  and  the  check  and  balance 
system,  53-55;  and  the  Federal 
judiciary,  55-58. 

Contracts,   types  of,    134-136. 

Cooley,  C.  H.,  on  the  leader,  521- 

523- 

Cooperation,  examples  of  successful, 
167-169;  examples  of  unsuccess- 
ful, 169-170;  social  benefits  of, 
171-172. 

Corporations,  taxation  of,  435-436. 

Country   (see  Rural  Life), 

Credit  (see  Banking). 

Crime,  and  legal  procedure,  281- 
283;  and  the  Public  Defender, 
283-285;  and  the  juvenile  court, 
285-287;  and  imprisonment,  287- 
289;  and  the  psychopathic  ex- 
pert, 289-291;  and  reformation, 
291-293. 

Declaration  of  Independence,  24-28. 
Democratic    party    on    the    tariff, 

397-399- 
Democratic  program  of  industrial 

reform,   223-224. 
Dependency,  and  the  neighborhood, 

323-325;    diagnosis  of,   325-327; 

and  the  friendly  visitor,  327-329; 

ideal   almshouse,   329-331;   state 

institutions,    331-333;     financial 

federation,    333-335- 
Des  Moines  Housing  Commission, 

311-313- 
Detroit  Associated  Charities,  325- 

327- 
Dictatorship  of  the  proletariat    (see 

Bolshevism) . 
Direct  legislation,  constitutional 
provision  for,  505-506;  in  Mis- 
souri, 507-508;  in  Oregon,  508- 
510;  actual  use  of,  5i4-5i^S-  (see 
Initiative,  Referendum). 


INDEX 
(see     Primary, 


533 


Direct     Primary 
Elections). 

Distribution,  previous  to  the  In- 
dustiial  Revolution,  119-121; 
since  the  Industrial  Revolution, 
121-130. 

Division  of  labor,  principle  of,  93- 
95;  in  colonial  manufactures,  98- 
100;  example  of,  102-103;  re- 
lation to  the  market,  105-107. 

Divorce,  uniform  law  on,  315-318. 

Dorr,  Thos.  W.,  on  suffrage, 
445-446. 

D wight,  Timothy,  on  the  early 
settlers,  9-1 1. 

Economic  freedom,  kinds  of,  138- 
140. 

Education,  of  the  negro,  297-299; 
forjiome  making,  318-328;  stand- 
ardization of  schools,  351-352; 
financing  the  schools,  353-354; 
school  attendance,  354-356;  vo- 
cational, 357-358;  wider  use  of 
the  school  plant,  359-360;  money 
value  of,  361-362. 

Elections,  non-partisan,  473-475; 
preferential  voting  and,  475-477 
(see   Frimary). 

Elliot,  Johnathan,  Debates,  42-43. 

Ely,  R.  T.,  on  socialism,  217-219; 
on  social  reform,  219-221, 

Employee  representation,  249-251. 

Exchange,  advantages  of,  11 5-1 17. 

Family,  economic  disruption  of,  300- 
311;  and  urban  life,  311-313; 
mothers'  pensions,  313-315;  di- 
vorce law,  315-318;  education 
for  home  making,  318-320;  atti- 
tude toward  marriage,   320-321. 

Farm   (see  Rural  Life). 

Fay,  C.  R..  on  cooperation,  171-172. 

Federal  Constitution  (see  Consli- 
tiition). 


Federal  government,  constitutional 
powers  of,  48-51;  extent  of 
powers,  51-53;  check  and  balance 
system,  53-55;  the  judiciary,  55- 
58. 

Federal  Reserve  System,  nature  of, 
423-425;  centralization  of  bank- 
ing under,  425-427;  elasticity  of 
banking  under,  427-429;  (see 
Banking). 

Federal  Trade  Commission,  374- 
376. 

Federation,  financial,   333-335. 

Forests  (see  Natural  Resources). 

Franklin,  Benjamin,  on  the  colonial 
population,  11-13;  on  colonial 
imion,  32-34;  on  the  new  Consti- 
tution, 42-43. 

Freedom,  kinds  of  economic,  138- 
140. 

Freund,  Ernest,  on  legislation, 
486-488. 

Friendly  visiting,  327-329  (see 
De  per.dency) . 

George,  Henry,  on  poverty,  147- 
148;  on  the  single  tax  as  a  remedy 
for  poverty,  148-152  (see  Single 
Tax). 

Gide,  Charles,  on  price,  111-113; 
on  exchange,  11 5-11 7;  on  private 
property,  132-134. 

Godkin,  E.  L.,  on  talk,   519-520. 

Groves,  E.  L.,  on  the  cityward 
drift,    337-339- 

Hamilton,  Alexander,  on  the  .Articles 

of  Confederation,  39-42. 
Hanna,  J.  R.,  on  the  non-partisan 

ballot,  473-475- 
Harding,   President,  on   the  issues 

of  the  twentieth  centur>',  70-73. 
Hart,    A.    B.,    on    negro    suffrage. 

448-450;  on  voting,  453-455;  on 

the  political  party,  459-461. 


534 


INDEX 


Hazard,    Blanche    E,    on   colonial 

manufacture?,   98-100. 
Henderson,  C.  R.,  on  imprisonment, 

287-289;    on   dependency,   331- 

333- 
Home  life,  in  the  city,  311-313. 
Home  making,  education  for,  318- 

320. 
Hull,  R.  M.,  on  preferential  voting, 

475-477. 

Illinois,  minority  representation  in, 
477-479;  state  administration  in, 
490-492,  492-494. 

Immigration,  labor  supply,  268- 
270;  living  conditions,  270-272; 
literacy  test,  272-273;  Japanese, 
273-275;  Americanization,  275- 
277;   policy,   277-279. 

Imprisonment,  substitutes  for,  287- 
289. 

Indiana,  taxation  reform  in,  435- 
436;    438-440. 

Industrial  combination,  364-366 
(see  Trust). 

Industrial  reform,  not  dependent 
upon  socialism,  219-221;  demo- 
cratic program  of,  223-224. 

Industrial  relations,  legal  responsi- 
bility in,  242-244;  Kansas  Court 
of,  244-246;  principles  of,  246- 
249;  and  employee  representa- 
tion,  249-251. 

Industrial  Workers  of  the  World 
(see  /.  IF.  W.). 

Initiative,  in  Oklahoma.  505-506; 
in  Missouri,  507-508;  in  Oregon, 
508-510;  actual  use  of,  514-515 
(see  Referendum,  Recall,  Popular 
Control). 

Interest,  factors  influencing,  124- 
126. 

International  trade,  basis  of,  391- 
393     (see   Tariff). 

I.  W.  W..  call  to  organize,   185- 


187;  declare  war  on  capitalism, 
187-188;  mass  action,  188-190; 
sabotage,  190-191;  press  extracts, 
191-193;  the  social  revolution, 
193-195  (see  Socialism,  Bolshe- 
vism). 

Jackson,  Andrew,  on  the  aims  of 

government,  62-63. 
Jamestown,  conditions  at,  3-5. 
Japanese  immigration,  273-275. 
Johnson,    A.    S.,    on    international 

trade,  391-393)    on  tariff,  393- 

395- 
Johnson,   Franklin,   on   the  negro, 

297-299. 
Juvenile   court,    285-287. 

Kansas  Court  of  Industrial  Rela- 
tions,  244-246. 

Kemmerer,  E.  W.,  on  the  Federal 
Reserve  System,  425-427,  427- 
429. 

Labor  legislation,  purpose  of,  231- 

232;  constitutionality  of ,  264-266. 
Labor      theory     of     value       (see 

Socialism). 
Land  bank  system,  339-341. 
Landfield,  J.,  on  bolshevism,  203- 

205. 
Lawlessness,  Lincoln  on,  62-63. 
Leader,  influence  of  the,  521-523. 
Legislation,  obstacles  to  intelligent, 

486-488;    aids  to,  488-490. 
Legislative    Reference    Bureau,    in 

Wisconsin,  488-490. 
Lenin,  N.,  on  bolshevism,  200-201 

(see  Bolshevism). 
LeRossignol,  J.  E.,  on  the  socialist 

theory  of  value,  208-210. 
Lichtenberger,  J.  P.,  on  the  family, 

309-311- 
Lincoln,  Abraham,  on  lawlessness, 

63-65. 


INDEX 


535 


Literacy  test,   272-273. 
Lopoushkin,   N.,  suicide  letter  of, 

203-205. 
Lowell,  A.  L.,  on  Public  Opinion, 

517-519- 

M'CuUoch  vs.  Maryland,  decision 
in  the  case  of,  51-53. 

McKenzie,  R.  D.,  on  the  urban 
neighborhood,  323-325. 

Madison,  James,  on  the  Federal 
Constitution,  53-55. 

Magna  Charta,  selection  from, 
15-16. 

Maine  Supreme  Court,  opinion  con- 
cerning   private    property,    412- 

414- 
Majority  representation,  475-477. 
Marbury  vs.  Madison,    decision   in 

the  case  of,  55-58. 
Market,  and  the  division  of  labor, 

105-107;  for  provisioning  a  great 

city,  113-115- 
Marketing    the    farmer's    produce, 

341-343- 
Marriage,  attitude  of  young  people 

toward,    320-321     (see  Family). 
Marx,  Karl,  on  value,  174-177;   on 

the  exploitation   of   the   laborer, 

177-179;   on  class  struggle,  179- 

181     (see  Socialism). 
Maxey,  C.  C,  on  the  city  manager, 

500-522. 
Mayflower  Compact,  16-18. 
Meat  packing,  division  of  labor  in, 

102-103. 
Minimum  wage,  259-262. 
Minority,   representation   of,   477- 

479- 
Missouri,  Initiative  and  Referendum 

in, 507-508. 
Money,    nature    and    function    of, 

109-111. 
Monroe,   Paul,   on   profit   sharing, 

165-166. 


Mothers'  pensions,  313-315. 

Moton,  Robert  R.,  on  the  negro, 
305-307- 

Municipal  utilities,  ownership  of, 
380-381,  381-383. 

Munro,  W.  B.,  on  woman  suffrage, 
447-448;  on  commission  govern- 
ment, 498-500. 

National  Cash  Register  Company, 
indictment  of,  368-370. 

Natural  resources,  of  the  nation, 
75-77;  necessity  of  conserving, 
405-407;  Conference  of  Gover- 
nors on,  405-407;  407-409; 
National  Conservation  Associa- 
tion, 409-410;  principles  of  con- 
servation, 410-412;  legal  basis 
of  conservation,  412-414;  needed 
legislation  with  respect  to  the 
conservation  of.  414-416. 

Natural  right,  and  the  suffrage, 
445-446. 

Negro,  occupations  of  the,  295- 
297;  education  of,  297-299; 
legal  protection  of,  299-301;  mi- 
gration, 301-303;  and  inter- 
racial cooperation,  303-305;  a 
charge  to  the.  305-307;  suffrage, 
448-450,  450-453- 

Neighborhood  and  the  city,  323-325. 

New  England  Confederation.  30-32. 

New  York,  law  regulating  campaign 
contributions  in,  465-466. 

Non-partisan  ballot,  473-475- 

North  CaroUna,  Recall  in,  512-514. 

Occupations  of  the  American  people, 

79-83. 
Ohio,  long  ballot  in,  479-481. 
Oklahoma,  popular  control  in,  505- 

506. 
Opinion      (see   Public  Opinion). 
Ordinance  for  Virginia,  18-20. 
Oregon,    legal    recognition    of    the 


536 


INDEX 


political  party  in,  467-469;  popu- 
lar control  in,  508-510. 

Panic  of  1907,  421-423  (See  Bank- 
ing). 

Party  (see  Political  Party). 

Pensions  for  mothers,  313-315- 

Pilgrims,  resolve  to  leave  Holland, 
5-6;  reach  America,  7-8;  estab- 
lish a  pure  democracy,  16-18. 

Pioneer,  work  of  the,  9-1 1. 

Political  party,  organization  of, 
457-459;  influence  upon  the 
voter,  459-461;  spoils  system, 
461-463;  campaign  contributions, 
465-467;  legal  recognition  of  the, 
467-469. 

Population  of  the  United  States, 
growth  of,  77  79. 

Popular  control,  in  Oklahoma,  505- 
506;  in  Missouri,  507-508;  in 
Oregon,  508-510;  in  Arizona,  510- 
512;  in  North  Carolina,  512-514; 
investigation  of  the  extent  of,  514- 
515  (see  Initiative,  Referendum, 
Recall). 

Poverty,  in  modern  life,  147-148 
(see  Dependency). 

Preferential  voting,  475-477. 

Price,  as  a  measure  of  value,  iii- 
"3- 

Primary,  an  ideal  law  governing, 
271-273-  (see  Elections). 

Private  property,  evolution  of,  132- 
134- 

Production,  man's  part  in,  91-93; 
in  anticipation  of  demand,  141- 
142. 

Profit  sharing,  extent  of  in  the 
United  States,  161-162;  ex- 
amples of  successful,  163-164; 
examples  of  unsuccessful,  165- 
166. 

Profits,  factors  influencing,  128-130. 
Property    (see  Private  Property). 


Psychopathic  expert,  and  crime, 
289-291. 

Public  Defender,  283-285. 

Pubh'c  Opinion,  origin  of  personal 
opinions,  517-519;  and  talk,  519- 
520;  and  the  leader,  521-523; 
merits  of,  523-525;  defects  of, 
525-527;    improvement  of,  527- 

529- 
Public  utilities,  social  importance  of 
378-379    (see  Railroads,  Munici- 
pal Uiilitics). 

Railroads,  development  of,  107-109, 
383-385 ;  government  adminis- 
tration of,  385-387;  legislation 
affecting,   387-389- 

Recall,  in  Arizona,  510-512,  in 
North  .Carolina,  512-514  (see 
Initiative,  Referendum,  Popular 
Control). 

Referendum,  in  Oklahoma,  505-506; 
in  Missouri,  507-508;  in  Oregon, 
508-510;  actual  use  of,  514-515 
(see  Initiative,  Recall,  Popular 
Control). 

Reformation,  principles  of,  291-293 
(see  Crime). 

Reizenstein,  M.,  on  early  railway 
development,  107-109. 

Rent,  factors  influencing,  123-124. 

Representation,  of  the  majority, 
475-477;  of  the  minority,  477-479- 

Republican  party,  on  the  tariff, 
400-402. 

Rhode  Island,  demand  for  suffrage 
in,  445-446. 

Rights,  of  the  individual,  45-46; 
of  the  states,  47-48. 

Roosevelt,  Theodore,  on  the  prob- 
lems of  American  life,  65-68;  on 
conservation,  405-407;  on  taxa- 
tion, 436-438. 

Ross,  E.  A.,  on  Public  Opinion, 
525-527. 


INDEX 


537 


Rural  life,  reasons  for  cityward  drift, 
337-339;  land  bank  system,  339- 
341;  marketing,  341  343,  the 
farm  woman,  343-345,  consoli- 
dated school,  345-347,  com- 
munity spirit,  347-349- 

Sabotage,  190-191. 

Savages,  the  pro  luctive  methods  of 

95-97- 
Schaeffle,    A.,    on    the    defects    of 

socialism,   215-217. 
School,  consolidation  of  the  rural, 

345-347     (see  Education). 
Schurz,  Carl,  on  the  spoils  system, 

461-463. 
Seager,  H.  R.,  on  interest,  124-126. 
Seligman,  E.   R.  A.,  on  economic 

freedom,   138-140;    on   taxation, 

225-226,  431-433. 
Shannonhouse,  F.  M.,  on  the  Recall, 

512-514. 

Sherman  Anti-trust  Act.  370-372. 

Short  Ballot  Association,  481-484. 

Single  tax,  and  poverty,  147-148; 
as  proposed  by  Henry  George, 
148-150;  results  claimed  for, 
150-152;  the  case  for  the  152- 
155;  the  case  against  the,  155- 
158;  services  rendered  by  the 
agitation  for,  158-159. 

Slater,  Samuel,  and  American  in- 
dustrial development,  loo-ioi. 

Smith,  Adam,  on  the  division  of 
labor,  93-95;  on  the  relation  of 
the  division  of  labor  to  the 
market,  105-107;  on  the  nature 
and  function  of  money,  109- 
iii;  on  the  factors  influencing 
wages,  126-128;  on  ta.xation, 
440-442. 

Smith,  Captain  John,  on  conditions 
at    Jamestown,    3-5. 

Smith,  Reginald  H.,  on  the  Public 
Defender.  283-285. 


Socialism,  labor  theory  of  value, 
174-177;  exploitation  of  the 
laborer,  177-179;  class  struggle, 
179-181;  aims  of  American,  181- 
183;  fallacy  of  the  labor  theory, 
208-212;  further  arguments  a- 
gainst,  212-214;  defects  of  pro- 
duction under,  215-217;  defects 
of  distribution  under,  217-219; 
versus  social  reform,  219-221 
(see   Bolshevism,  I.W.W.). 

Spoils  system.  e\-ils  of,  461-463 
(see  Political  Party). 

Sprague,  0.  M.  W..  on  the  panic  of 
1907,  421-423;  on  the  Federal 
Reser\'e  System,  423-425. 

Starr,  F.,  on  the  productive  methods 
of  savages,  95-97. 

State  administration,  defects  of, 
490-492;    reform  of,  492-494. 

States'  rights  under  the  Constitu- 
tion, 47-48. 

Strikes    and    lockouts,    extent    of, 

237-^39- 
Suffrage,  under  bolshevism,  198- 
200;  in  colonial  times,  443-444; 
demand  for  universal,  445-446; 
woman,  447-448:  negro,  448- 
450,  450  453;  and  the  actual  use 
of  the  ballot,  453-455- 

Taft,  William  H.,  on  criminal  pro- 
cedure, 281-283;  on  a  Federal 
budget,  494-496. 

Talk,  importance  of,  519-520. 

Tariff,  basis  of  international  trade, 
391-393;  nature  of,  393-395; 
United  States  Tariff  Commission, 
395-397;  Democratic  party  on, 
397-399;  Republican  party  on, 
400-402;  and  national  prosperity, 
402-403. 

Taussig,  F.  \V  ,  on  profits,  128-130; 
on  the  inequality  of  wealth,  143- 
145;    on  the  tariff,  402-403. 


538 


INDEX 


Taxation,  defects  of  American,  431- 
433;  breakdown  of  the  general 
property  tax,  433-434,  of  cor- 
porations, 435-436;  social  signi- 
ficance of  436-438;  need  of  study- 
in  the  problem  of,  438-4.40;  prin- 
ciples of,  440-442;  and  unearned 
wealth,  225-226    {see  Single  Tax). 

Thompson,  Carl  D.,  on  municipal 
ownership,  380-381. 

Thrift,  practice  of,  233-235. 

Transportation  Act  of  1920,387-389. 

Trust,  a  typical  agreement,  366- 
368,  abuse  of  power  by  the,  368- 
370;  legislation  affecting,  370- 
372,  374-376;  the  American 
Tobacco  Company  ordered  dis- 
solved, 372-374. 

United  States,  growth  of  the 
population    of,    77-79. 

United  States  Railroad  Adminis- 
tration, 385-387- 

United  States  Steel  Corporation, 
development  of,  364-366. 

United  States  Tariff  Commission, 

395-3Q7- 
United    States  vs.  Patterson  et  al, 
368-370. 

Value,  as  measured  by  price,  iii- 
113;  socialist  theory  of,  174-177. 

Villard,  Oswald  G.,  on  the  negro, 
303-305. 

Virginia,  House  of  Burgesses  in, 
18;  representative  government 
in,  18-20;  asserts  the  principles  of 
just  government,  22-24. 


Vocational  education,  problems  of, 
357-358 

Vocational  guidance,  promise  of, 
226-228. 

Voters,  how  influenced  by  the 
political  party,  459-461;  educa- 
tion of  in  Oregon,  508-510. 

Voting,  the  question  of  compulsory, 
453-455;  preferential,  475-477- 

Wages,  factors  influencing,  126-128. 

Warbasse,  J.  P.,  on  cooperation, 
167-169,  169-170. 

Washington,  George,  on  the  period 
following  the  Revolutionary  War, 
38-39;  charge  to  the  nation, 
60-62. 

Wealth,  of  the  nation,  87-89;  in- 
equahty  of,  143-145;  unearned, 
225-226. 

Wilson,  Woodrow,  on  the  dangers 
of  the  World  War  period,  68-70, 

Wisconsin  Country  Life  Conference, 
on  community  spirit,  347-349. 

Wisconsin  law  regulating  campaign 
contributions,   466-467. 

Wisconsin  Legislative  Reference  De- 
partment, 488-490. 

Workmen's  Compensation,  a  typi- 
cal law  providing  for,   262-264. 

World  War  period,  Wilson  on  the 
dangers  of,  68-70. 

Woman  suffrage,  447-448. 

Woodbum,  J.  A.,  on  an  ideal 
primary  law,   271-273. 

Young,  A.  N„  on  the  single  tax, 
158-159. 


-^JXV  8 


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